Huge debt forces Cessnock GC into Voluntary Administration

14 May 2018

The Newcastle Herald this week is reporting that the debt-ridden Cessnock Golf Club has entered voluntary administration.

According to the article the club owes David Mingay, the Managing Director of its redevelopment partner Daracon Group, in excess of $10 million. The club is still open for golf, and is confident of surviving this difficult period. According to both the Administrator and Club President, Mingay has been patient with the outstanding balance and “done the right thing by the club” to enable it to keep trading and to try repay its debts.

The Cessnock Golf Club is one of the oldest in the Hunter region, but it’s home course is reasonably new having been redesigned by Jack Newton a few years ago.

For the full picture read The Herald article, which includes the following:

A VOLUNTARY administrator has been called in to take control of the financially troubled Cessnock Golf Club as it struggles under the weight of more than $11 million debt.

Cessnock is one of the oldest golf clubs in the Hunter and has operated a public-access course off Mount View Road since 1926.

In 2005, the club signed a joint venture with Newcastle civil construction company Daracon Group for a $30 million redevelopment of its land for a golf-lifestyle resort known as Stonebridge Living.

It included a 138-lot residential subdivision, which still has lots for sale, and an 18-hole Jack Newton golf course and new clubhouse that opened in 2012.

The club owes more than $10 million to secured creditor David Mingay, the managing director and founder of Daracon Group.

Administrator Simon Thorn, of PKF Australia, was appointed last month and has advertised seeking expressions of interest for an amalgamation to keep the registered club operating.

He said there were several “positive” lines of enquiry and expressions of interest closed later this month.

“The club has been in a position where it is cash poor,” Mr Thorn said.

“The land development is all but complete and the club has significant assets for sale, but we are unsure at this stage if they will satisfy the debt in full. It is very early days though.”

There are 58 residential lots and two commercial sites for sale at the club.

President Robert Hodge said the club had more than 250 members, but no money to advertise its new facilities that include a cafe, function centre and soon-to-open kids’ playground.