On 2 September 2020, Colac R.S.L. Inc’s creditors voted in favour for the Deed of Company Arrangement (DOCA) as proposed by the association’s management committee and the Colac & District Football Netball League Inc. At that meeting, creditors also appointed Scott Andersen and Nathan Deppeler of Worrells Solvency & Forensic Accountants as deed administrators.
On 9 September 2020, the DOCA was executed which resulted in management of the association’s business and affairs being returned to committee.
Mr Andersen said, “Through the DOCA, the Colac RSL has avoided liquidation and being shut down. The DOCA provides a solution to pressures faced by the association, which ultimately lead to the appointment of administrators.
The voluntary administration process gave all stakeholders the time needed to formulate a DOCA proposal that enabled the business to continue operating and offered a certain return to creditors. This is compared to the alternative of liquidation which would have resulted in the business likely closing, termination of staff and significant uncertainty of any return being available for creditors.”
Due to the COVID-19 restrictions, Worrells temporarily closed the association’s restaurant, bar, function and gaming facilities. Critically however, the veteran welfare services remained accessible for the returned service people, ensuring these services were not interrupted during these stressful times.
“We would like to thank key stakeholders of the association for their support together with the staff and its members of the association for their patience and understanding. Without that support, we couldn’t have achieved this positive and viable solution for the benefit of the Colac community and the RSL members.”
Worrells has 31 offices nationally and 26 partners, across Qld, NSW, ACT, Vic, SA, and WA. Worrells has been providing solvency management, insolvency administration, and forensic investigation services for over 47 years with particular experience in incorporated associations, not for profit organisations and registered clubs.