Presbyterian Church Qld forced to pay $32m debt
Queensland’s Presbyterian churches face extinction after a $32m Supreme Court ruling forces the denomination to consider winding up and clouds the future of a top private school.
The embattled Presbyterian Church of Queensland has been ordered to pay creditors $32m in what insiders say will result in the fire sale of property across the state, leaving up to 10,000 worshippers without churches.
A long-awaited Supreme Court decision handed down on Friday could also jeopardise elite Toowoomba girls’ school Fairholme College, which is run by the Presbyterians and this year made News Corp’s list of Australia’s Top 100 Private Schools.
Sources within the church – which was placed into receivership in May 2021 – say the court ruling could be the death knell for the denomination as a whole.
“It is a disaster,” one insider exclusively told The Courier-Mail.
“The money isn’t there to pay the debt and this will lead to local churches, which are just trying to follow Jesus, without assets and many will close as buildings are sold off.
“As for Fairholme College, it is one of the state’s major private boarding schools, but who knows what will happen.”
PCQ’s financial woes were laid bare four years ago when the Supreme Court appointed receivers PricewaterhouseCoopers and its PresCare aged care facilities were sold.
Last week’s ruling concerns multiple debts owing to financier Catalyst for historic dealings with PresCare facilities in Townsville and the Brisbane suburbs of Corinda and Carina.
The court ruled in favour of Catalyst Townsville that the church pay it $12.39m plus unpaid rent of $100,186 and outgoings of $42,476.
It instructed the church to pay Catalyst Corinda $17.62m, unpaid rent of $1,185,318 and outgoings of $139,740.
Catalyst Carina was ordered to receive unpaid rent of $153,913 and outgoings of $67,188.
All amounts carry interest from 2021, putting the total owed to around $32m.
Presbyterian Church of Queensland moderator Reverend Philip Strong said: “The church is reviewing the judgment and has no further comment at this time.”
The church assembly is due to meet on Thursday to discuss next steps.
A source said it would be “un-Christian” of the assembly to ask receivers to appeal the court ruling and they should find a way to pay what is owed and then “probably wind up the denomination”.
There are around 100 churches belonging to PCQ, which is registered as a basic religious charity and has income tax exemption.
PresCare’s cash flow troubles began in 2018, when one of its lenders, CBA, refused to refinance, but granted a 12-month extension.
PCQ and Uniting Church of Australia oversee four prestigious schools through the Presbyterian and Methodist Schools Association which they founded in 1918.
Brisbane Boys’ College, Clayfield College, Somerville House and Sunshine Coast Grammar School are not believed to be financially impacted by the PCQ situation.
