Coolum resort in administration
CLIVE Palmer's Coolum resort has gone into administration as the battle over who manages the home of the Australian PGA. rages in the Brisbane Supreme Court today.
In a move believed related to Mr Palmer's attempt last week to sack Hyatt as resort manager, he today placed the property in the hands of KordaMentha administrator Ginette Muller.
It is understood the resort would continue to operate as normal and that the jobs of its 650 workers were not at risk.
Guests at the resort Sunday reported that Mr Palmer was present until picked up late afternoon by a helicopter that landed adjacent the reception/golf clubhouse area.
It is believed only about 78 guests were booked into the resort that night.
Mr Palmer is thought to be concerned that because he has no access to a profit and loss statements for the resort's operation, even though he is a director of the company that owns it.
He is not in a position to know whether or not it is in breach of Queensland law and the companies act.
The Sunshine Coast Daily understands that at the end of January the Coolum resort recorded a $780,000 trading deficit that Mr Palmer was expected to cover.
Ms Muller was not available to discuss the administration but is expected to provide a statement later today.
The court has today heard that the Hyatt is maintaining it has 25 years left on its management agreement.
The deal, which was struck in the 1980s, gives the Hyatt 3% of gross revenue regardless of whether the resort is profitable or not.
Mr Palmer last week said he had terminated the management agreement with Hyatt.
But the Hyatt lodged a Supreme Court action to gain an injuction to reinstate the resort's name and the resort's long-time manager Maurice Holland.
Signs, which Mr Palmer had ordered to be removed, were put back up.
