PINT Club lifeline after damning Receiver’s report

Embattled PINT Club has been thrown a lifeline despite a damning review into its finances. Read what the report said.

PINT Club’s true financial position was worse than disclosed in audited accounts over four years as the community social club accumulated almost $1m in losses, an auditor’s report claims.

A $185,000 government grant given to the club for soundproofing was used to “underpin operations and offset losses from ordinary trading” and the receivers said they were unable to establish whether the PINT committee had properly considered financial concerns raised in previous audits after 2019.

Previous PINT committee members face potential legal action for allegedly failing to disclose the social club’s losses.

“We have reviewed the applicable legislative provisions and considered the conduct of the

association’s past committee members and management and formed a preliminary view that the requirements of the acts and common law have not been complied with,” the report said.

“We allege the duty to prevent insolvent trading by the association and the common law duty to discharge duties with reasonable care, skill and diligence have been breached by association officers over an extended period (a number of years).”

Stuart Reid, administrator with Rodgers Reidy

Administrators will lodge a report with Licensing NT detailing “the alleged breaches and improper behaviour.

“Once lodged, we would anticipate receiving a response from Licensing NT as to whether this is a matter it intends to investigate further. In the event we form the opinion that other offences may have been committed as a result of our future investigations, we will complete and lodge further reports with Licensing NT.”

The receiver’s report said it was unclear whether after 2019 the committee “considered” PINT Club’s increasing debt to the Australian Taxation Office or that it was carrying a significant superannuation liability.

Receivers concluded poor financial management over five years contributed to PINT’s bleak fiscal outlook.

“We believe the association’s financial difficulty is a result of sustained trading losses since at least 2018, with club management and association officers being unable to develop and implement plans to arrest those losses,” auditors said.

Pint Club generic Abala Rd, Marrara, Darwin. Picture: Pema Tamang Pakhrin

“It appears that only after the AGM held in March 2022, at which two new committee members were appointed alongside the existing committee members, were efforts made by the committee to fully understand the association’s poor financial position.”

PINT carried liabilities of $952,255 when receivers were called in last month.

Despite the grim prognosis, receivers Roger Reidy have extended a lifeline to the embattled club, calling for creditors to consider a Deed of Association Arrangement that could allow the club to continue trading.

Roger Reidy has requested a 45-day pause until no later than September 25 to better determine PINT’s financial outlook.

Creditors will next meet on August 21 to decide the future of the Association.

If implemented, a Deed of Association would require PINT to be professionally

managed by an experienced liquor and hospitality enterprise that implements “an achievable plan” aimed at returning the club to sustainable profit.

PINT club generic

Administrators have engaged a liquor and gaming consultant to carry out a review of the Club’s operations and present a report by the end of August.

The club had $12,694 deposited in bank accounts and owed PINT cricket club $815 and the footy club $2940 when receivers moved in last month.

An assessment by Grays estimated the auction realisable value of unencumbered assets to be $121,435. Stock was valued at $18,000 and there were further assets with an auction value of $33,100.

The Territory has sought repayment of the entire $185,000 grant plus $20,300 GST.

Owed $514,616, the Australian Taxation Office is PINT’s largest creditor followed by the NT government which is owed $203,500 for the unacquitted grant and $40,479 for unpaid gaming tax. Supplier credits total $187,458.