Sydney pub mogul Jon Adgemis has rejected claims by administrators that he withdrew $9 million from his struggling hospitality business, arguing that the transactions were intended to support the company.
In response to an administration report by BDO Business Restructuring’s national leader Duncan Clubb, Adgemis insisted that he did not derive “any personal benefit from those transactions.”
The BDO administrators highlighted $9 million in funds taken out of Adgemis’ pub business in the year leading up to their appointment, suggesting the transactions “may constitute uncommercial transactions.” Additionally, they allege Adgemis extracted $475,000 from the business since becoming a director on 6 November 2023.
Administrators have advised creditors to liquidate Adgemis’ businesses, which were taken over by lenders due to a $100 million debt dispute. This recommendation comes despite Adgemis proposing a deed of company arrangement to fully repay certain creditors for his five pubs.
A spokesperson Adgemis stated on Thursday that a supplementary report for creditors is expected to provide clarity on his deed of company arrangement compared to the uncertainties and potential losses of liquidation.
The $9 million identified by BDO represents a “subset of transactions in respect of intercompany transfers between the property group,” the spokesman explained, clarifying that Adgemis had not personally benefited from the transactions, which were directed towards legitimate business expenses.
The spokesman added that the transactions were carried out under the direction of lenders to the property companies and Public Lifestyle Management (PLM), the employment entity of the pub group.
Adgemis’ company, JAGA, is now a “net creditor” to the companies in administration, potentially owed up to $13 million.
Source: The Australian.
