The Sands Resort enters voluntary administration

THE Sands Resort in Torquay has entered voluntary administration, with the Melbourne office of firm PKF Australia to make “an urgent assessment of the financial position of the company”.

According to a letter sent to creditors today, the administrators intend to “carry on the company’s activities and to continue trading”, and are seeking the co-operation of all creditors in the supply of goods and services.

In July 2017, previous resort owners The Handbury Group announced they had sold the golf course and hotel complex to Cloud Abacus Holdings and Odyns Holdings, who will operate the resort through their operating company, Walden Cloud Group.

The terms of the sales agreement remain confidential, but a six-month marketing campaign in 2016 to sell the resort valued the entire property at about $25 million.

PKF Australia has entered into control of all assets of the Walden Cloud Group and “frozen” all debts as of July 11.

The administrators, pursuant to the Corporations Act, are required to hold a meeting of creditors within eight business days of their appointment, which they will do via telephone conference on July 22 at 10.30am.

They will also hold a second meeting within 25 days of their appointment to vote on the company’s future direction.

PKF Australia estimates their management of the voluntary administration will cost between $100,000 and $150,000.