Presbyterian Church of Queensland in Receivership

The Presbyterian Church of Queensland, which runs aged care operator PresCare, has been placed in receivership after the sale of three properties fell short, leaving it unable to pay debts owed to a creditor, the Australian Financial Review reported. PCQ was unable to meet the terms of a contract with its partner, real estate investment trust Catalyst Health, triggering the insolvency. Catalyst and PresCare had entered into several sale and lease back deals in recent years. Catalyst has a single investor – Sunsuper Superannuation Fund – which is investing in long-term partnerships in aged care and senior accommodation. The Supreme Court of Queensland appointed PwC’s restructuring experts Michael Owen and Phil Carter as receivers late in the evening of May 12 to work through the church organisation’s assets and debts. PresCare has been operating for 90 years and had aged care facilities across the state. However, it hired McGrathNicol last year to help with the sale of its seven aged care homes, after deciding to exit the sector since it was unable invest the significant capital required. It is understood there are at least $60 million in refundable accommodation deposits (RAD) in doubt. A RAD is guaranteed by the government so if there is a default, it is required to pay the money owed to the resident. Read more.