ATC

[CeeMeNow 371]

It has been reported on the Peter Profit site that the Chinese backed company failed to pay the $90 million today, if proven true, then the Westpac & ANZ banks will decide what happens next.

[Iraklis 2,365]

Is anyone really surprised? that said, just a word; I have been warned to be careful about said PProfit site and the stuff reported there, just sayin.....

 

Cheers Iraklis

[CeeMeNow 371]

1 hour ago, Iraklis said:

Is anyone really surprised? that said, just a word; I have been warned to be careful about said PProfit site and the stuff reported there, just sayin.....

 

Cheers Iraklis

He certainly doesn't bat 100%, but his information regarding ATC has been pretty accurate over the last few years, so must have a reliable, close to the action source.

My recollection of the bank terms is that the money was due last year, and was rolled over for another 12 months, meanwhile their property assets were revalued down in the last accounts and will be again, I suspect, in the year ending July 24, there by reducing collateral cover.

[We're Doomed 5,908]

Won't HRNZ just take a little bit more off Rangiora and Winton to keep Auckland afloat?

Possibly get Nelson to put on a fundraising meeting to help out Auck.

[Taku Umanga 209]

Just posted online by Barry Lichter:

Fears about the future of the Auckland Trotting Club were reignited today with news that the Chinese buyers of its Pukekohe training property have failed to meet the payment deadline.

In a development which ATC president Jamie Mackinnon described as “disappointing” in a newsletter to members, Mount Hope Limited did not come up with the outstanding $90 million due last Friday.

With the club between $70 million and $80 million in debt and accruing interest of more than $500,000 a month, the $100 million deal was seen as its sole lifeline.

But Mackinnon said the club remained hopeful that Mount Hope would still settle, its lawyers saying they were still committed to buying the land and were actively seeking offshore finance.

Mackinnon said the club had now issued Mount Hope a notice requiring them to settle within 12 clear working days. At the expiry of that period the ATC could then elect to exercise it rights and remedies under the sale agreement, which includes Mount Hope forfeiting its 10% deposit of $10 million.

“On a positive note, the ATC still owns the land, has achieved a Unity Plan Change, and, we have already repaid part of the Club’s bank debt from the $10 million deposit.”

Mackinnon said the sale agreement provided for penalty interest to accrue at 14%pa.

Mackinnon said the club was exploring a plan B in the event Mount Hope did not front up with the money.

In an earlier September newsletter, Mackinnon attempted to defuse rumours that Mount Hope would not be settling the deal on time, saying no extension of settlement had been sought.

Mount Hope’s lawyer had advised the movement of funds out of China was proving difficult and Mount Hope would be seeking alternative finance should that continue.

But the default should come as no surprise given China’s unprecedented crisis and the far-reaching effects of the collapse of several of its real estate giants.

In August, a developer walked away from a $30 million land deal in South Auckland, forfeiting its $5 million deposit.

Mackinnon previously said if the Chinese buyer pulled out of the Pukekohe deal, the club would still be OK as it could then keep the $10 million deposit and put the property back on the market with the benefit of the zoning having been changed.

But industry experts say the chances of the ATC getting anywhere near $100 million for the land are remote, that figure considered “enormous overs” even when it was inked and the market being considerably depressed now.

When the Chinese deal was struck, the 35.2 ha of land, before rezoning, was valued on the ATC’s books at $29 million and Fletchers had offered only $35 million.

The implications of a lower sale price could be catastrophic for harness racing in the North Island.

Even if it could stave off closure, the club would not have the money to build a new training centre, a vital feeding ground for its already depleted horse numbers.

The ATC, which lost at least $108 million on its failed apartment developments, is understood to be meeting with its bankers to consider the development.

[JJ Flash 2,622]

It just keeps getting worse for the ATC

A salutary lesson to other clubs about sticking to your knitting and leaving experts to carry out property sales and developments. Not well-meaning individuals with few if any skills in that area

[Pure Steel 1,930]

Cannot understand how Franklin valued at 100 million?

In 2021 the value of Alexandra Park was $118 million and Franklin training complex 39 Hectares was $29 million .

How did it change so dramatically the price  ?  100 million for Franklin seems excessive. out in the Bush a bit 

Surely the answer is SELL Alexandra Park for $170 million approx . Clear the debt .

Put a 'State of the Art race track and stand at Franklin for $70 million . (A 1200m  track That goes the 'correct direction'  these days of Left handed unlike Alex Park wrong way lol )   

Keep ALL the trainers that currently train at Franklin In Business ! and ADD a few more with Barns !!! .  (No one trains at Alex Park do they? )  

Access on race night by RAIL that goes right past the Franklin course  for the Patrons. (have 5 star, 4 star, 3 star , 2 star , and 'burger bar' dining ) 

First class racing every Saturday night. Best horses and trainers in the Southern Hemisphere !

Old Alex Park site converts to a New Metropolis for oldies (to use the hospital over the road at Greenlane with everything modern for city dwellers ) 

ALL problems Fixed in just 6 Sentences !!!!!!!!!!!!!!!!    put me in charge. I'll sort em' out 

[Idolmite 3,398]

40 minutes ago, Pure Steel said:

Cannot understand how Franklin valued at 100 million?

Maybe the supposed buyers realise that now, and it's easier to just walk away? $100 million was about triple what it was worth, and it's likely worth even less now than it's true value at the time the deal was inked. 

[Ohokaman 6,465]

1 hour ago, Pure Steel said:

Cannot understand how Franklin valued at 100 million?

In 2021 the value of Alexandra Park was $118 million and Franklin training complex 39 Hectares was $29 million .

How did it change so dramatically the price  ?  100 million for Franklin seems excessive. out in the Bush a bit 

Surely the answer is SELL Alexandra Park for $170 million approx . Clear the debt .

Put a 'State of the Art race track and stand at Franklin for $70 million . (A 1200m  track That goes the 'correct direction'  these days of Left handed unlike Alex Park wrong way lol )   

Keep ALL the trainers that currently train at Franklin In Business ! and ADD a few more with Barns !!! .  (No one trains at Alex Park do they? )  

Access on race night by RAIL that goes right past the Franklin course  for the Patrons. (have 5 star, 4 star, 3 star , 2 star , and 'burger bar' dining ) 

First class racing every Saturday night. Best horses and trainers in the Southern Hemisphere !

Old Alex Park site converts to a New Metropolis for oldies (to use the hospital over the road at Greenlane with everything modern for city dwellers ) 

ALL problems Fixed in just 6 Sentences !!!!!!!!!!!!!!!!    put me in charge. I'll sort em' out 

The fact that Fletchers only offered $35m tells you that.

Aucklanders don’t bother going to the Park on their doorstep, don’t see them struggling all the way out to Pukekohe do you ?

[CeeMeNow 371]

Notes to the Financial Statements for the year ending  31July 2023  Auckland Trotting Club

In the event the Club does not realise adequate funds from this land sale, or retain the support of our banking partners, then it will need to consider additional or alternative strategies to meet its obligations as and when they fall due. These circumstances represent a material uncertainty which may significantly  impact the Clubs ability to continue as a going concern and the Club may be unable to realise it's assets and discharge it's liabilities in the normal course of business. The financial statements do not include any adjustments that may be made to reflect the situation should the Club be unable to continue as a going concern. Such adjustments may include realising  assets at other than the amounts at which they are recorded in the financial statements.

[Lamour.2 61]

1 hour ago, Pure Steel said:

Put a 'State of the Art race track and stand at Franklin for $70 million . (A 1200m  track That goes the 'correct direction'  these days of Left handed unlike Alex Park wrong way lol )   

Sounds good but I really don’t like harness tracks on the inside of galloping tracks.  I like to be near the action when I’m on course. 

[Pure Steel 1,930]

27 minutes ago, Ohokaman said:

The fact that Fletchers only offered $35m tells you that.

Aucklanders don’t bother going to the Park on their doorstep, don’t see them struggling all the way out to Pukekohe do you ?

I really don't think that's an issue. would be way better for most being at Franklin. 

I trained at Papakura/takanini for a few years last century. The population in those areas was growing even then. Must be HUGE now 

Distance to Pukekohe from Papakura area is only  20kms.    and north to Auckland on the dreaded M1 at Epsom was 25 kms.

A whole heap of trainers like Herlihy, Abernathy's Purdons and more all in that area( Clevedon  and surrounds) so Very Easy to get the horses to Franklin, as we always did. 

Much harder getting to Alex Park? . and there's No trainers North of Auckland are there anyway ? 

 South Auckland has the greatest NZ Population so there are Plenty of Patrons around if they want to put in a bit of effort to go 20-30kms . 

And Cambridge Hamilton area people/ trainers/ patrons  would love it too. Travelling north to the races piece of cake to get to Franklin instead of Epsom.

Ideal Area for a State of the Art track really .    

[Alf Riston 2,142]

28 minutes ago, Pure Steel said:

I really don't think that's an issue. would be way better for most being at Franklin. 

I trained at Papakura/takanini for a few years last century. The population in those areas was growing even then. Must be HUGE now 

Distance to Pukekohe from Papakura area is only  20kms.    and north to Auckland on the dreaded M1 at Epsom was 25 kms.

A whole heap of trainers like Herlihy, Abernathy's Purdons and more all in that area( Clevedon  and surrounds) so Very Easy to get the horses to Franklin, as we always did. 

Much harder getting to Alex Park? . and there's No trainers North of Auckland are there anyway ? 

 South Auckland has the greatest NZ Population so there are Plenty of Patrons around if they want to put in a bit of effort to go 20-30kms . 

And Cambridge Hamilton area people/ trainers/ patrons  would love it too. Travelling north to the races piece of cake to get to Franklin instead of Epsom.

Ideal Area for a State of the Art track really .    

I think I had proposed a very similar idea a while back PS - I would build new stands and facilities on the current back straight including a undercover train station dumping you right at the track. It would take some vision and excellent management skills so probably 10,000 to 1 as it stands 

[Alf Riston 2,142]

58 minutes ago, CeeMeNow said:

These circumstances represent a material uncertainty which may significantly  impact the Clubs ability to continue

Alf's Corporate BS decoding services utilised:

'These circumstances represent a material uncertainty which may significantly  impact the Clubs ability to continue' = we're fucked!

[Spikecity 1,021]

Alex Park is doomed - has been for a long time.

Put Pure Steel in charge - he seems to have more sense in his big toe than the whole ATC committee.

No one goes there nowadays and the glory days are never coming back 

[We're Doomed 5,908]

It is about 50 kilometres from central Melbourne to Melton. about 70 kilometres from central Sydney to Menangle, and about 60 kilometres from central Auckland to Pukekohe. Surely a no brainer? How long can they keep paying $500,000 a month in interest?

Sell Alex Park. put it down to experience, put out a hit on the CEO and President who did all the damage and start again in the countryside.

Might be fortuitous the Franklin sale fell through.

[Idolmite 3,398]

5 hours ago, Ohokaman said:

The fact that Fletchers only offered $35m tells you that.

Aucklanders don’t bother going to the Park on their doorstep, don’t see them struggling all the way out to Pukekohe do you ?

I used to go to Pukekohe all the time, for the cars and the horses. But then l lived in Pukekohe at the time 

[Pure Steel 1,930]

7 minutes ago, Idolmite said:

I used to go to Pukekohe all the time, for the cars and the horses. But then l lived in Pukekohe at the time 

Beautiful horse country down that area.

And a lot of trainers that race in Auckland are in that area. ATC should build a U-Beaut New course there .    (Sell Alex Park , the debt has to go)  

Imagine a Shuttle Bus full of happy (young and older folk) going back and forth from the Pukekohe Gallops on their big race days around to the Luxury ATC Trot Centre on the other side of the railway, so those patrons get dinner and fine evening Saturday Harness racing at the gallops completion . They'd have a blast .!!!

They could Do it every month. A long day but if you pace yourself you would make it. I'd get mates to go all 12 months lol.  

[We're Doomed 5,908]

It has just occurred to me, cashing up Alex Park and moving to Puke is obviously the only remaining option, but you wouldn't let the ATC organise the building of the new complex would you. HRNZ would have to step in and control the money and organise the new build.

[MrBigStuff 478]

They cant move it from the city. Plenty of rumors saying harness racingnis heading back to Moonee Valley…leaving there was a proper cock up

[Idolmite 3,398]

2 minutes ago, MrBigStuff said:

They cant move it from the city. Plenty of rumors saying harness racingnis heading back to Moonee Valley…leaving there was a proper cock up

You say that, and while it may be true is Sydney and/or Melbourne, nobody in Auckland gives a damn about Alexandra Park and where it sits. It's sad, but the operation has largely been brought undone by those in charge. Yes, a decline in horse racing overall has contributed, but a large part of the ATC decline is due to those in charge of the ATC. 

[Lamour.2 61]

I have always been dead set against selling Alex Park but honestly I don’t see any alternative unless a miracle happens & the property deal goes through.  If not the bank will have to force a sale of Alex Park.  

[CeeMeNow 371]

It seems to me that if they have failed to secure the cash in the last 12 months, they are not going to succeed now, of course it could be a cunning plan, walk away from the $100m, losing $10m, then offer $50m next year when ATC are getting desperate, bingo, saving $40 million!

[eljay 1,787]

Or go into liquidation then set up a new company and ..................

[Lamour.2 61]

It would almost be surprising if the developers didn’t do that CeeMeNow. Not  sure the ATC would go for it though as it’s probably not enough to get them out of trouble.