End of the Road for Arena Management

Creditors have voted to wind up Arena Management, the former manager of the Sydney Entertainment Centre, paving the way for further investigations into claims the firm traded while insolvent.

A meeting of creditors in Sydney yesterday rejected three alternative deed of company arrangements, including proposals from Arena, the company run by veteran promoter Kevin Jacobsen.

The decision means the voluntary administrator and liquidator, Randall Joubert, now has extra powers to investigate related-party transactions and allegations the business traded while insolvent.

Joubert, who was appointed voluntary administrator on 31st July, alleged in a report to creditors that Arena traded while insolvent for as long as nine months.

The liquidator said he would also take a closer look at related-party transactions between Arena and Jacobsen's company, Campbell Street Theatre.

Joubert has said a $1.7 million payment from Campbell Street to Arena had "the appearance of a round robin", and he has suggested Arena's directors saw the company's money as "available for their own personal benefit.

"All three [deeds] were rejected by the creditors overwhelmingly, and the company is now in liquidation,'' Mr Joubert said. ''The liquidators will now have the luxury of time to investigate all of those things."

Creditors (including the Australian Tax Office, music promoter Michael Coppell and the Entertainment Centre owner, the Sydney Harbour Foreshore Authority) are seeking between $7.5 million and $11.5 million.

Joubert said Arena's 123 staff (who are owed $770,000) would be paid in full if they had some "quick wins" in the liquidation. One issue under dispute is a claim by Campbell Street Theatre that it is owed $930,000 as a secured creditor, whereas Joubert said Campbell Street owes Arena $290,000.

3rd September 2009 - JACOBSENS DENY INSOLVENT TRADING CLAIMS: SEEKS NEW ADMINISTRATOR

14th August 2009 - JACOBSEN USED BOX OFFICE FUNDS TO PROP UP ARENA

13th August 2009 - SHOW GOES ON AT SYDNEY ENTERTAINMENT CENTRE

31st July 2009 - ARENA MANAGEMENT ENTERS RECEIVERSHIP