Pub magnate Jon Adgemis has officially lost control over his bankruptcy, after the Federal Court rejected his last-minute attempt to self-declare bankruptcy and instead issued its own sequestration order, allowing the Australian Taxation Office (ATO) to take charge of the process.
Adgemis, once a high-flying dealmaker at KPMG, had been fighting to avoid formal bankruptcy proceedings amid debts exceeding $1.8 billion, including $162 million owed to the ATO and $26 million to former financier Richard Gazal.
Although he surrendered to bankruptcy voluntarily on Thursday, the ATO and the Australian Financial Security Authority successfully overturned that move and secured a court-imposed order today.
The court’s ruling means the ATO has now appointed Pitcher Partners’ Andrew Yeo to probe Adgemis’ financial affairs, recover assets, and report to creditors.
Mr Yeo and his team will conduct an in-depth review of Adgemis’ dealings, including prior investigations by WLP Restructuring, the firm previously overseeing his estate.
WLP Restructuring’s lawyers disputed unspecified ATO “concerns” about their work, but Justice Elizabeth Raper made clear no findings had been made on those issues.
Mr Yeo’s team will now interview Adgemis, examine related entities, and prepare an initial report for creditors within four weeks of appointment.
