Former MRC chair’s bankruptcy shock

Former Melbourne Racing Club chairman Matt Cain, who has jet setted to the US, was issued a $140k-plus bankruptcy notice, as the club is in turmoil.

Mr Cain has been chased by Diocles Capital, which issued a bankruptcy notice on September 9, giving him 21 days to pay. Picture: Vince Caligiuri/Getty Images)

Former Melbourne Racing Club chairman Matt Cain has done a last minute deal from Los Angeles to avoid bankruptcy over a $142,360 debt.

Mr Cain flew out to the United States after his final meeting as chair of the racing club that controls Caulfield, Sandown and Mornington racecourses last week.

The club is now in turmoil, with a meeting on Tuesday to decide Mr Cain’s replacement still likely to be deadlocked on five votes each amid a bitter boardroom brawl.

Mr Cain has been chased by Diocles Capital, which issued a bankruptcy notice on September 9, giving him 21 days to pay.

That deadline passed at close of business on Monday, but Mr Cain did a deal shortly before 5pm to “resolve” the matter.

Seoud Solicitors in Brunswick would have been able to file paperwork enacting bankruptcy proceedings in the Federal Court on Tuesday without the down to the wire deal.

An earlier County judgement from September 4, stated that “Matthew Lucas Cain pay the plaintiff $138,000 for the outstanding claim, $791.80 for interest and $3,568.20 for costs. Total amount of $142,360.”

Matt Cain, outgoing MRC chair. Picture: Jason Edwards

The debt was incurred by Mr Cain’s company 5 Horseshoes Pty Ltd.

The bankruptcy notice issued to Mr Cain, who was on the MRC board for 15 years stated: “This bankruptcy notice is an important document. The information it contains is based on provisions of the Bankruptcy Act 1966. Bankruptcy proceedings may be taken against you.”

Mr Cain declined to comment when asked about the debt and his trip to the United States.

“The matters referred are in legal discussions so I am unable to comment further at this point in time,” he said.

He then later said: “Just to clarify the matters concerning me have been resolved and withdrawn.”

A source close to Mr Cain claimed that this was a business dispute linked to his company, not a personal debt.

The source argued that he was being pursued because he had been a guarantor on the debt.

The bankruptcy threat comes after Mr Cain’s tenure as chair at the Melbourne Racing Club ended with open battles among board members.

Two female board members, Caitrin Kelly and Alison Saville, have been threatened with defamation by Mr Cain and former board member Mark Pratt after they claimed the club had a “poor culture” and “toxic atmosphere”.

Ben Melham riding Angel Capital at Caulfield Racecourse on September 21, 2024. (Photo by Vince Caligiuri/Getty Images)

The club’s board, or executive committee, has been locked in a fierce battle for control of the club, with rebel challenger John Kanga trying to take over as chairman.

Mr Cain had tied his legacy to a new $250 million grandstand at Caulfield, known as the Grand Pavilion, which has been put on hold amid fierce infighting.

The designs for the stand were locked in after Mr Cain and MRC staff travelled to France and England with an architect.

Mr Cain also travelled to Japan in August to the Asian Racing Conference to broker deals to bring horses to the Caulfield Cup on October 19.

Members who spoke at the annual meeting last week complained about proposals to sell Sandown Racecourse, which could be worth more than $800 million and the location of a new mounting yard away from the winning post.

The MRC has also been looking for a new chief executive after Josh Blanksby stepped down.

A high profile AFL figure has been linked to the role.

Originally published as Former MRC chair’s bankruptcy shock