'Butters' can mean ugly, unattractive or disgusting. It is probably derived from the term 'Butt-ugly.'
Ugly/Unattractive:
"Mate have you seen that girl Raessa, she's alright you know?"
"Mate, she's butters"
Disgusting:
"Mate did you hear Tom puked all over his bed last night?"
"Errr man, that's butters"
"Mate have you seen that girl Raessa, she's alright you know?"
"Mate, she's butters"
Disgusting:
"Mate did you hear Tom puked all over his bed last night?"
"Errr man, that's butters"
by Street Lexicon January 17, 2014