The Australian Taxation Office (ATO) is seeking to derail a proposed bankruptcy deal by Sydney pub baron Jon Adgemis, launching a Federal Court bid to take control of the case.
Adgemis, who faces personal debts of up to $1.8 billion, has been attempting to push through a rescue plan offering creditors 1.5c in the dollar. But documents shared by WLP Restructuring trustee Scott Pascoe reveal the ATO has applied to be substituted as the lead applicant creditor.
The tax office’s move comes after an application filed earlier this year by funder Richard Gazal to bankrupt Adgemis.
A decision is expected on September 29, a week before creditors were due to vote on the businessman’s future on October 9.
WLP said it was “considering our position as controlling trustees in relation to the application and will update creditors in due course,” but stressed it was not “party” to the ATO’s action.
At his peak, Adgemis controlled 22 pubs and hotels, as well as other venues and buildings. Many have since been seized or sold as his business empire collapsed.
Internal ATO documents allege companies linked to him owe more than $300 million in tax, including $123 million by Public Operating Co, which once claimed $1.29 billion in assets but was found to have none.
Lawyers acting for insolvency firm BRI Ferrier have previously alleged the debts stem from a fake GST refund fraud scheme, claims Adgemis denies.
Liquidator Tim Cook, who now oversees Public Operating Co, reported that Adgemis has failed to provide a required statement of the company’s assets and financial position.
Source: Daily Telegraph.
