The rise and fall of Nathan Tinkler continues, with the Newcastle Herald today reporting that Westpac has appointed external administrators to two of his companies which could threaten his ownership of the Knights.
The Herald, which is the local paper for the Newcastle Knights, says that the administrators have been appointed to sell two properties – one in Newcastle and one in Queensland.
The move comes just days before the former tycoon is due to renew a $10.3 million bank guarantee, held with Westpac, that underpins his ownership of the Newcastle Knights.
If Mr Tinkler’s Hunter Sport Group fails to have the bank guarantee in place by March 31, the Knights’ members club will begin to assume control of Newcastle’s NRL flagship for $1.
A spokesman for the Tinkler group told the Herald that they were working closely with Westpac but that the appointment of administrators to these companies was “separate to the Knights’ bank guarantee”.
But the Herald infers that the separation between the property sales and the guarantee is not as distinct as the Tinkler group spokesman suggests. It reports that Westpac registered a mortgage over the Newcastle property “on August 12, 2011, a week after Mr Tinkler took control of the Knights, which included him securing an initial $20 million bank guarantee with Westpac.”
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