Doubts grow as Nathan Tinkler misses Newcastle Knights deadline

Uncertainty over the future of Nathan Tinkler's ownership of the Newcastle Knights NRL club is growing with a deadline to secure a multi-million dollar bank guarantee being missed this week.

After Tinkler's Hunter Sports Group (HSG) was unable to produce a new bank guarantee on Tuesday, Knights members club Chairman Nick Dan is able to access a $10.3 million surety already in place, which expires on Monday 31st March.

That will leave Tinkler until close of business on 31st March, to prevent the members club directors from launching the process that will enable them to oust the struggling mining magnate and buy the Knights back for $1.

If Tinkler defaults on Monday, the members will then lay claim to the cash and approach Tinkler to relinquish control of the club.

Tinkler continues to be under financial pressure, with banks appointing external administrators at two of his companies.

The bank guarantee, which has to be amended each year to take into account the increase in the CPI, was part of Tinkler's deal to purchase the Knights in 2011.

Nick Dan told the ABC that the developments are worrying, stating "I was always hopeful that a new bank guarantee could be put in place but the longer things were going along without one, the more concerned I have become.

"Quite concerning from the members club point of view, external administrators appointed and appears to be appointed by Westpac, who has funded the bank guarantee."

In addition, Fairfax has reported some staff and player payments were not made on time this month.

Created in 2011 from the former Tinkler Sports Group, HSG was created to co-manage the Newcastle Knights and A-League franchise the Newcastle Jets and to strengthen 'brand Hunter' throughout Australia.

7th March 2013 - TINKLER RESOLVES HUNTER SPORTS GROUP TAX AND MANAGEMENT ISSUES