By Clyde Mooney
Under the weight of massive debt and ongoing burdensome lease arrangements, Australia’s largest specialist hotel and gaming owner and operator has been forced into receivership.
A media release by receivers PPB Advisory has announced the appointment of Stephen Longley, Jack Bournelis and Marcus Ayres as receivers and managers of National Leisure & Gaming (NLG).
NLG operate a portfolio of 35 venues, with 30 in NSW and five in Queensland.
The publicly listed company has been struggling for the past couple of years, with its share price languishing recently around 0.4c per share.
In June American finance giant Goldman Sachs, representing a conglomerate of New York hedge funds, quietly bought NLG’s senior debt, which knocked another 30 percent off its share value.
Today’s official press release states that “The receivers and the financiers recognise that the board of NLG has performed admirably under trying circumstances. However, despite strong operational performance, it has not been possible for the company to address long-term structural issues relating to onerous leases at certain venues.”
Speaking to TheShout, Longley said PPB Advisory and NLG management they will work closely with stakeholders to ensure the best outcome.
“PPB Advisory is currently undertaking a review of the business and is working with NLG’s management team to better position the hotel portfolio for future success.”
NLG CEO Dan Brady, and general manager of marketing and commercial, Alistair Flower, were not able to comment at this stage.
Craig Laundy resigned as a non-executive director of the company earlier this week.