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“As the administrator’s report makes clear, the Melbourne Rebels were heavily reliant on distributions from Rugby Australia. Unfortunately, RA made a range of representations to us over many years regarding funding that it would provide. We relied on these representations, but RA did not honour these commitments,” Widdup said.
Creditors will vote at the next meeting on whether to support the deal or wind up the company.
The administrator from PwC, Stephen Longley, found that the Rebels had been insolvent since 2018.
If creditors chose to vote for liquidation instead of the proposed deal, it could pave the way for a costly litigation for the club’s directors.
Rugby Australia had previously outlined its support for the club to enter liquidation. RA has been contacted for comment.
More to come
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