Clubs vote to give Cambridge a lifeline - HRNZ to acquire its assets and settle $3m in debts

Harness Racing New Zealand gained unanimous approval to acquire the assets of Waikato Bay of Plenty Harness Racing at a special general meeting in Christchurch last night.

Subject to rubber stamping by Cambridge club members tonight, HRNZ will take over on September 30 by raising a mortgage of up to $4 million on the property.

Designed to protect the continuity of racing and training at Cambridge, the money will be used to pay off debts of $2,998,145 and allow for maintenance, remediation, compliance and upgrade works, including repairs to the grandstand roof and stables.

Two thirds of the debt is owed to HRNZ which has loaned the club a total of $2,006,448 over the last four years - $815,901 in 2023, $430,967 in 2024, $293,909 in 2025 and $465,669 in 2026. Another $991,697 is owed to third party creditors, including the Inland Revenue Department.

HRNZ has provided ongoing financial support on the understanding Cambridge could trade its way out of its financial difficulties but the club has now determined that it is insolvent and unable to meet its obligations.

Chair John Coulam said the WBoP board had worked hard over several years to improve the club’s financial position and, while it had been a difficult decision, the takeover provided the greatest certainty for its members, participants, staff and creditors.

HRNZ Chair Grant Jarrold said Cambridge Raceway was critical to harness racing in the North Island and it had become clear that HRNZ needed to act if racing there was to continue.

HRNZ Interim Commercial Director Anna Flynn said without the action there was a significant risk that creditors would start recovery action, including applying to place WBoP into liquidation.

Under section 24 of the Racing Industry Act, if that happened, then following repayment of all creditors, the remaining assets would vest with HRNZ anyway. With the asset takeover, it would keep Cambridge Raceway under industry ownership and enable racing to continue while the creditor process was resolved.

HRNZ viewed Cambridge Raceway as a strategic racing and training venue and, subject to any outcome resulting from the review of Project Stamina, it would establish an appropriate operating model for the delivery of future race meetings there.

In the club’s July 31 balance sheet, the total value of the assets which HRNZ will acquire amounts to $32,977,646, the land’s latest valuation set at $30 million.

Club delegates at the meeting nevertheless expressed concern that HRNZ was not in a financial position to be exposed to any further losses at Cambridge, and that there was not enough fat in the system for repayments.

But they were told the operation would be run separately, outside of HRNZ accounts, and an undertaking was given to report to clubs every three months.