Knights takeover hits financial hurdle

Updated June 30, 2011 09:37:00

Mining magnate Nathan Tinkler's takeover of the Newcastle Knights NRL club is on shaky ground after his company missed a key deadline to finalise financial arrangements for the deal.

A staggering 97 per cent of Knights members voted in March this year for Mr Tinkler's Hunter Sports Group (HSG) to take control of the club.

The takeover was expected to take weeks, not months, and has helped the club lure supercoach Wayne Bennett and former player Matt Gidley as chief executive.

But it is understood HSG's chief executive and executive chairman met the Knights' board yesterday to ask for an extension to today's deadline.

Knights chairman Rob Tew released a statement saying HSG has been unable to meet its obligations to pay the club's debts of $4 million or provide a bank guarantee.

Mr Tew says the board will consider HSG's request for an extension once it provides a full representation with details of the bank guarantee and when the debt will be paid.

HSG has refused to comment on the developments.

Tags: sport, rugby-league, nrl, australia, nsw, newcastle-2300

First posted June 30, 2011 09:22:00

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