Hoops

Blaze creditors meeting

"costs" are generally a reimbursement of only part of "costs" of the legal action's "winner" actual legal costs - often both sets of lawyers have to come to an agreement of what was the "costs" - which is often less than what is billed (and paid)

So the lawyers of the "winner" still get paid usually PDQ, the lawyers for the "loosing" party that goes belly-up -if not allready mostly paid up by their "as-you-go" invoicing - generally get their snout into the trough (always) after the ATO, but well before the "winner" can get to get reimbursed by the now belly-up "loser"

not real nice behavior IMHO

In this type of situation - the company in administration cannot owe its "owners" anything - BUT it CAN owe money to another legal entity that is "owned" through another process, by the same "owners".

If set up properly all that happens is that those "owners" hold debt that could have been structured to be the very next debt that needs to be paid from any assets AFTER government charges ( such as ATO - which always comes first) are paid off.

This can put third tier debts ( such as J0yce's ) in a situation where there is no money to be devolved to them, particularly if the NBL license ( an asset) is on-sold for a nominal amount by the administrators.

You can even have the apparently legal ( but assine and possibly unethical) situation where - say - a "MS Smith" has lent $1m to "coast NBL" limited , who then buy an NBL licence, 3 years later they go into administration, and the independent administrators then dispose of the NBL licence asset to a "Blaze NBL " entity for $500,000 , who purchased that licence with funds lent to "blaze NBL" by the same Ms Smith.

Blaze NBL now have the NBL license,and a debt of $500,000 to Ms Smith - "Coast NBL" passes $200,000 to the ATO, $300,000 goes to discharge Ms Smiths loan , and no further money is available to "coast NBL" creditors, which then becomes bankrupt.

this is just an observation of what MAY be possible - and does not meant that this is actually happening here .

Like HO said, most of the debt is owed to the owners. So I wouldn't count that as a must pay back debt.. In saying that, how much longer will the owners bank roll this team if they are owed 11m+ after a few seasons? There's only so much they can fork out until they wave the flag.

I think the Gold Coast is a sporting grave yard. Rollers couldn't "make it". NRL & A-League are having issues with support. Give it some time & im confident that the AFL team will have the same issues.

I don't want another team to fold, but maybe the league should take a good hard look at that market.. Are they able to sustain so many national sporting teams? I know i harp on this a lot on Twitter etc, but maybe it's time they call David Biwer about his old TAS/Hobart NBL bid he did 6odd years ago and re-visit it, instead of putting teams in these sporting grave yards.

WOW. they are screwed.

They owe the combined league salary cap + another $3mil!!

Im sorry, but seriously how do you incur that much debt?
Maybe its all these payments to Joey to go to Vegas and "scout players".

So they managed to resolve the $12mil debt...Big deal..then what?
At the end of the day, the debt is incurring because of awful financial processes and a lack of self-control by the club.

Unless you sort out those processes first, then these debt problems will come back to haunt them in the next few years (assuming the investors bail them out this time)