I am writing to notify you that the Club has resolved its dispute with ALH Group, which was the catering contractor to the Club for the past several years.

Note 23 to the Annual Report for the year ending 30 April 2011 disclosed certain amounts totalling $468,600 net outstanding from the Club to our former caterer ALH.  Members were further advised at the Annual General Meeting of the Club on 22 July 2011 that the Club had terminated the contract with ALH and the Club was engaged in a process of “contract dispute resolution with ALH”.  I am pleased to advise members that ALH and the Club have now reached a commercially negotiated settlement of this dispute. 

The detailed terms and conditions of the settlement are subject to confidentiality undertakings that are normal to a commercially settled dispute of this nature.  However, we are able to advise Members that the settlement is beneficial to the Club by a reduction in the balance outstanding together with a provision for repayment of the agreed outstanding monies via monthly payments over a period of 36 and up to 92 months.

On behalf of the Board I would like to thank the Food & Beverage Committee in working to resolve this dispute and particularly, Messrs Carless, Padden, Cox, Winchester and Rees.  I would also like to record our thanks to Mr Tim L’Estrange for legal advice in the matter.

Regards

Walter Carpenter

Chairman