Bowls club treasurer expresses disappointment

Woy Woy Bowling Club treasurer Mr Don Allan has expressed disappointment in St George Bank and its receivers.

Mr Allan said that a proposal to purchase the club's land and buildings and enjoy a share of its profits, was put to the bank from an Ettalong Beach syndicate.

The syndicate is headed by local developer, Mr Tony Altavilla.

Mr Allan said that legislative changes were needed to allow a private company to enter into profit sharing arrangements with an establishment owned by its members, such as Woy Woy Bowling Club, and that one politician had responded positively.

"The syndicate will receive both rent and a profit share from the club.

"Initially, the syndicate will provide approximately $2.3 million to pay out the bank, unsecured creditors, and statutory creditors.

"Any surplus will be used to promote the club's continued trading," he said.

Mr Allan said that he thought that the bank had accepted the syndicate's offer in June.

"But we've seen nothing in writing and had no confirmation.

"The majority of the club's board are for the syndicate's offer," he said.

Mr Allan said that the bank has been expecting a decision from the board on the syndicate's offer.

"Apart from the fact that we don't have a quorum at the moment, we simply don't have the expertise to make a decision.

"The bank, and its receivers and solicitors, ought to make that decision," he said.

Mr Allan said that the board's capacity to make an informed decision had not been helped by the bank and receivers "keeping them in the dark" and from "the fact that we've had no say since the appointment of the receivers on January 29.

"We've not seen current trading figures since the appointment of the receivers.

"We're not getting the facts.

"They're not telling us what's going on.

"The receivers have not been telling the administrators, appointed by us, much at all.

"Our own solicitor, whose recent report was negative (in terms of accepting the syndicate's offer), said that he has not been able to get enough figures."

Mr Allan said that the club owed about $1.25 million upon the appointment of receivers at the end of January and owed about $1.825 million in early June.

He queried the extent to which the cost of receiver services contributed to this additional debt.

He said that the club had an "interest only" loan repayment arrangement with the bank until December last year and that upon the club's request of an extension of the arrangement the bank appointed an auditor whose investigations culminated in the declaration of the club's "insolvency".

"The bank panicked too early.

"I have been disappointed with their attitude," he said.

Con Orfanos, August 6