Got some cash to spare ?

$3.5m Exchange sale flops
Nick Sas, The West Australian August 8, 2012, 7:45 am




The pending buyers of Kalgoorlie's famous Exchange Hotel have walked away from a $3.5 million deal for the pub, citing a delay in the transfer of the venue's liquor licence.

In a massive blow to creditors and the selling agent, the bid for the well-known watering hole from a group of five unnamed Perth and Kalgoorlie-Boulder-based investors in April fell apart on Monday.

Yesterday, receivers for The Exchange, Ernst & Young, revealed the deal had broken down with the potential suitors saying they did not obtain approval from the director of Liquor Licensing for the transfer of The Exchange's liquor licence within the time required.

A representative for the buyers, Mt Lawley chartered accountant Jeremy Porteus, did not return _West Business' _calls to explain the situation.

The news comes as thousands of mining delegates are in Kalgoorlie for this week's Diggers & Dealers forum.

The deed to the pub has been in limbo since its previous owners Trinity Flame - run by millionaire Irish businessman David Harmon - became insolvent in September last year, owing money to suppliers and staff.

An on-site auction in March failed to find a buyer, with no one in attendance making a bid.

The group of investors were portraying themselves as white knights for the pub, made famous for its skimpy barmaids and Wild West Saloon, with Mr Porteus saying they would turn it into "the best pub in Kalgoorlie" through the introduction of a cocktail and spirits bar called the "Boom Boom Room".

Selling agent Lance White said he had not yet spoken to Ernst & Young about the next step in the selling process.

It was more than likely to be sold via private treaty, he said.
Kalgoorlie businessman Ashok Parekh bought the hotel in 1995 for $1.7 million before selling it to Trinity Flame in 2008 for $7 million.

Come on Pete. here's ya big chance. Go for it!

Robert

No flippin need to buy it Rob, i been squatting down in the Exchange booze cellar for years
now and the silly buggers dont know it

Just about drunk the place dry too
Can yous blokes drop me off some Baccy and a sausage roll or two

In Yesterdays Kalgoorlie Miner paper

WA Police intervened on the now canned $3.5 million bid from a five-man consortium to buy Kalgoorlie-Boulder’s Exchange Hotel.

Receivers of the pub, Ernst & Young, announced on Tuesday the deal had fallen through over the transfer of the pub’s liquor licence.

But the Department of Racing, Gaming and Liquor yesterday said the consortium had made its final submission on the transfer on August 2 – four days before it officially pulled the plug on the deal.

“The licensing authority received the application for a transfer of the Exchange Hotel liquor licence in May 2012,” a DRGL spokesman said. Police subsequently intervened in this application and further information was sought by the licensing authority from the applicant as a result of this intervention.

“The applicant then sought an extension to the deadline for its submission, and finally made its submission on August 2.”

However, the spokesman said a protection order, allowing the pub to continue trading, was still in place until October 18.