WAFL: West Perth creditors told to see cents after voluntary administration analysis

Joondalup Arena.
Joondalup Arena.

WEST Perth creditors can get back 4 per cent of what they are owed or get nothing.

That is essentially the message after administrator KordaMentha released its recommendations this week into the finances of the Joondalup WAFL club, which went into voluntary administration last month with about $790,000 debt.

It means if the Falcons owe a creditor $100,000, the entity would get just $4000 back.

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The four cents in the dollar proposal, which KordaMentha considered the best alternative, forms part of a deed of company arrangement put forward by the WA Football Commission.

The deed would also give the WAFC the power to nominate its own board and includes a $250,000 loan from the commission for West Perth staff and player payments.

If creditors voted for the club to fold instead of accepting the 4 per cent option, the KordaMentha report said they would get nothing.

A third option for creditors would be to hand control of the club back to the board. KordaMentha did not recommend this take place given the club would be back where it started.

The creditors were due to make a decision on Tuesday, but required more time. A decision is expected to be made early next week.