Sydney 2000 Olympic Games News Main MenuThe AOC has lost Au$5 million on its investment in the Reef Casino Trust which is facing posssible receivership after a string of poor results and plunging unit prices. The AOC paid Au$1 for each of the units which are now trading at just 28 cents each.
The AOC's investment was generated initially from public donations, corporate dinners and appeals - is now in jeopardy after the casino adjourned talks with its financiers on Monday as asked the stock exchange to suspend trading in its units.
The financiers, led by the ANZ Bank, have threatened to take action unless significant progress is made on a Au$40 million equity injection within the next 14 days.
The AOC and its President John Coates have been criticised for the high risk investment in Reef with analysts saying that the AOC, a non-profit, tax-exempt, body should not have invested in anything other than "blue-chip stocks".
The AOC, after its purchase of another 1.03 million shares at Au$1.15 per unit (as a result of a rights issue) holds a total of 8.18 million shares at an average cost of 88 cents a share.
Mr Coates is also chairman of Reef in which he is facing a personal loss of about Au$600,000. Coates said yesterday that the loss in no way effected his ability to run the Sydney 2000 Olympics boasting that the AOC was the third wealthiest Olympic Committee after Italy and the United States.
"The AOC was therefore assured of receiving considerable income and other expenditure relieving benefits between 1994 and 2000 under agreements with sponsors, other marketing partners and SOCOG", Mr Coates said.
"In light of this assured income, as well as the possibility of receiving 90% of any surplus from the Games, it is correct to view the investment (in Reef) as merely a percentage of the then net assets or cash reserves."
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