Western Melbourne Group (WMG) Holdings had previously successfully requested an extension of time to the wind-up hearing for the purposes of finding a new financial backer for the club, but their possibility to trade was plunged into chaos on Wednesday when US property developer Maciek Kaminski withdrew from his plans to buy a $100m controlling stake in the consortium that owns the Tarneit-based Western United club.
The Federal Court ruled it had no confidence in WMG's last-ditch bid to save the club after club lawyers argued during Thursday's first winding up hearing that it had found a new backer capable of repaying the $800,000 debt owed by the club itself to the ATO.
It submitted that secured creditor Johnson Controls had offered to pay more than $15m to the ATO and other creditors to save the four companies facing wind-up orders - including Western United Football Club - and ensure its own investment would be returned in the long-term via United's hopeful return to the A-League.
The ATO Deputy Commissioner of Taxation first made a winding up order application to the Federal Court on March 20.
ATO legal representative Adam Lukacs rejected Johnson Controls' last-minute submission on the basis that WMG had failed for five months to secure financing to repay the debt, also citing the remote likelihood of Football Australia reinstating Western United's licence to play and therefore operate in a solvent manner.
Western United have been plagued by financial issues for months, missing player and staff payments on more than one occasion, whilst owners such as WMG Executive Chairman Jason Sourasis and founder Steve Horvat face significant personal tax debts.
Liquidators for WMG as well as three other companies owned by Sourasis were appointed by the court via video link at a midday hearing on Friday.
The club had its A-Leagues licences withdrawn by an independent panel on August 8 and, after lodging an appeal on August 20, had a Football Australia hearing set down for September 2.
Their reinstatement now appears impossible.
