The Gold Coast Titans’ Property Trust has been placed into voluntary administration in a move the organisation says will reduce debt across the group, and ensure the viability of the NRL franchise.
The Titans say the move for the Property Trust, which is separate to the football club, will reduce significant debt and allow payments to be made to creditors.
The organisation insists the move will have no day-to-day impact on the club.
Managing director Michael Searle says the decision will see creditors receive a far greater return than if the Property Trust had gone into liquidation.
“We are aiming for the best possible outcome for the creditors in these most difficult of circumstances,” Searle said in a statement.
“While the decision was not an easy one, in the end, it was the best option for all concerned.”
The Titans said placing the Property Trust in the hands of administrators will also help in the settlement of the sale of the Centre of Excellence.
The development of the multi-million dollar facility is at the heart of the financial quagmire the club finds itself in.
The tactic is designed to head off Friday’s action in the Federal Court by Reed Constructions which says it is owed more than $1 million for work on the complex.
Reed…