Melbourne Rebels Rugby Union - Case Update

Stephen Longley of PwC, the voluntary administrator of the Melbourne Rebels Rugby Union, has recommended that creditors accept a DOCA proposed by directors to save the club, but his report contains some damning findings with respect to the extent of insolvent trading that occurred.

According to the administrator’s report, the club was insolvent from at least 31 December 2018 (some five years before the administration) and an insolvent trading claim against the directors could exceed $16.8 million.

The DOCA proposed by those same directors would see employees paid in full, while unsecured creditors would likely receive between 15 and 30 cents in the dollar.

Creditors, including Rugby Australia — which released its own statement in the wake of the report — are set to vote on the deal on 3 May. In addition to the potential insolvent trading claims, the report notes that the directors estimate there may be over $8 million in claims against Rugby Australia for failing to provide funding to the club. If the DOCA is accepted, the directors would provide funding to pursue a claim against Rugby Australia.

Read the administrator’s report here.