Falcon's Debt Clarified

Proceeds from auction will pay outstanding amounts associated with this loan

By Latrobe City Council - 27th February 2002 - Back to News

Latrobe City’s Chief Executive Officer, Richard Hancock, has clarified aspects of the former Gippsland Falcon’s total debt, following claims of some confusion over the issue.

Mr Hancock said that as at 30 June 2001, the Gippsland Falcons owed Latrobe City Council $534,000 made up of loans, advances, outstanding rates and other charges.

"The current amount owed however, is approximately $563,000 in total," Mr Hancock said.

"In relation to one of the loans with principal of $300,000 plus outstanding interest, Latrobe City Council is mortgagee in possession of the assets of the former Gippsland Falcons.

"The primary asset is the Mobil Park facility. As indicated in a recent announcement, Latrobe City Council is in the process of disposing of Mobil Park by public auction. Council intends to apply its share of the proceeds from the disposal of these assets to the outstanding amounts associated with this loan," Mr Hancock said.

"Council may pursue further action to recover outstanding amounts in respect of a separate loan and other debts. However, given the level of interest in the property to date, Council is hopeful that such further action will not be necessary," Mr Hancock added.

Source: www.gippsland.com

Published by: news@gippsland.com