Throb Nightclub debts exceed $900k as liquidator probes possible Corporations Act breaches

A report into the collapse of Darwin gay nightclub Throb has revealed its debts to be larger than first alleged, while two possible breaches of the Corporations Act continue to be probed.

Throb Nightclub Darwin. Picture: File

The company liquidator examining the collapse of popular Darwin nightclub Throb believes its directors may have traded while insolvent and also may have made unfair preference payments.

Throb, founded in 2000 as Darwin’s first and only gay nightclub, ceased trading on September 6 last year, with Adelaide-based insolvency outfit Tarquin Koch appointed to liquidate the company’s assets on April 17 this year.

Earlier this month, company liquidator Mr Koch filed his statutory report to creditors, revealing total debts of $928,361.18 – about $200,000 higher than the estimated liabilities originally reported by this masthead.

The largest unsecured creditor is the Australian Taxation Office, which is owed $700,000 by way of unpaid tax liabilities.

Other large creditors include American Express ($117,826.79), Angus Accountants ($27,804.40) OneMusic Australia ($26,171.06).

Local creditors include Angus Accountants, Arafura Catering Equipment, Jacana Energy, Neptune Security Services, and NT Recycling Solutions.

Throb Nightclub director Timothy Palmer. Picture: Katrina Bridgeford.

According to Mr Koch’s report, his firm was able to release only about $15,000 from auctioning off plant and equipment, and a vehicle registered to the company.

He said he was “unable to ascertain” whether any dividend would be paid.

The dividend’s likelihood hinges on whether any of Throb’s directors made unfair preference payments – paying off certain creditors while insolvent in a manner that affects other creditors who have been disadvantaged.

“My review of company bank statements for potential unfair preference payments is ongoing,” Mr Koch said.

In addition to possible preference payments, Mr Koch also believed the directors traded while insolvent, although he did not provide a date from which he believed the company was insolvent.

Tarquin Koch senior manager James Robertson told this masthead that his firm was yet to ascertain the financial means of the company directors to meet any insolvent trading claim.

Throb Nightclub directors Tim Palmer and Mark Marcelis enjoying the 2019 Darwin Cup. Picture: GLENN CAMPBELL

Should they be found to have the means, Mr Robertson said an out-of-court settlement was more likely, due to the costs involved with pursuing an insolvent trading claim through the courts.

He said the firm had another three months until it was required to finalise its investigation, during which time to “dig a little bit deeper into the [alleged] preference payments to determine whether there’s anything worth pursuing”.

The directors, Timothy Palmer, Mark Marcelis and Karen Dunham, were contacted for comment via Throb’s Facebook page, which remains active.

The directors most recently posted on May 17.

“We’re missing being open,” the post read.

“Thinking of you and remember to never stop creating. Mark, Tim and Karen.”

Throb, which made history as Darwin’s first gay nightclub when it opened in 2000, closed its doors in September last year after the Smith St premises it shared with Meraki Greek Taverna was deemed structurally unsound.