Greyhound Racing NSW (GRNSW) has agreed to formally amend the loan agreement between the NSW National Coursing Association (NCA) and the GRNSW administered Greyhound Industry Development Fund (GIDF) which underpins The Gardens complex.
The original loan agreement was signed in December 2004 and allowed for the NCA to borrow up to $2.1 million over ten years to assist with financing the construction of The Gardens. Currently only $300,000 has been borrowed.
The new arrangements allow for the NCA to drawdown the remaining $1.8 million payable under the loan by February 2011.
In announcing the changed terms GRNSW Chairman Professor Percy Allan AM said that the NCA had worked hard at reducing its debt through the sale of assets and this was a condition of the Board agreeing to the change.
“The GRNSW Board made it clear to the NCA that in order to change the loan conditions the NCA would need to raise $2 million for debt reduction in its own right and be able to clearly show that it could service the remaining debt and operate profitably into the future.
“While it has taken some time, to their credit the NCA have now met the requirements of the Board and accordingly the Board agreed to amend the loan terms, which in effect simply reduces the period over which the money can be accessed by three years.
“It must also be remembered that this agreement has always been a loan from the GIDF and built into the agreement are details on repayment, which will see the NCA repay the amount in full to the GIDF once they become fully debt free,” Professor Allan said.