They allege the governing body owes $6 million for underfunding the club over a number of years, and an additional $2 million to cover the cost of Rebels’ player wages while they were on Wallabies duties.
Button outlined the directors’ argument that if Rugby Australia paid this amount that would pay off some of the $11.6 million owed to the Australian Tax Office, reduce the pool of debt owed, and improve creditors’ chances of receiving the amount they are owed.
“Directors raise that it would be more beneficial to extend the convening period rather have the company go into liquidation because the … proposal would have offer a … better return to creditors than an immediate winding up,” she said.
The board – chaired by Paul Docherty, and made up of lawyer Tim North, investor Lyndsey Cattermole, Rugby Victoria finance officer Owain Stone, Gary Gray, Georgia Widdup, and Rugby Victoria president Neil Hay – have until March 22 to submit the proposal.
Creditors will then vote on whether to enter into this arrangement.
Administrators agreed to the extension on Wednesday night, the court heard, noting the arrangement proposed by the board could be of greater benefit to creditors than an immediate winding up.
In summarising…
