November 17, 2017
Mr Langdon said RugbyWA would continue operating as normal with all remaining staff while KordaMentha worked on a financial restructure.

He explained that the directors of RugbyWA appointed voluntary administrators because of concerns of the future solvency of the business. In a voluntary administration, control of the operations transfers from directors to the administrators and all debts are put on hold while the future of the business is decided.

Mr Langdon said: “This concern was due to the financial constraints on RugbyWA from the Western Force’s elimination from Super Rugby Competition and Australian Rugby Union pursuing RugbyWA for its legal costs.”

The role of administrators is to achieve the best result for the business and the creditors. Creditors make the final decision on options proposed by the administrators, who make a recommendation based on their statutory responsibility to get the best outcome for stakeholders.

Mr Langdon said: “In these circumstances, KordaMentha will actively pursue a restructure with any party interested in participating in the future of RugbyWA. We are confident that a restructure is achievable so that the future of the sport is assured in Western Australia. A restructure will provide a platform for RugbyWA to survive and an opportunity to thrive.

“RugbyWA is committed to regaining a presence in the national professional competition and a restructure is a pathway to achieve that objective.

“Meanwhile, RugbyWA remains responsible for the local competition and development of the sport. Many local clubs have begun pre-season training, so our objective is to settle the business as soon as possible.”
A first meeting of creditors will be called within approximately one week. At that meeting, RugbyWA creditors can decide to appoint a committee to represent creditors throughout the administration.

A second meeting of creditors will be held about three to four weeks later. At that meeting, creditors must decide whether or not to accept a financial restructuring, usually through a Deed of Company Arrangement.

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