Bankrupt pub baron Jon Adgemis could be compelled to publicly answer questions over debts exceeding $1.8 billion, as liquidators move to examine the collapse of his Public Hospitality Group.
Administrators BRI Ferrier have applied to the Federal Court to question directors linked to the group, a process that may require Adgemis to give evidence, while his personal bankruptcy is being handled separately by Pitcher Partners.
A report to creditors by Pitcher Partners has revealed that tens of millions of dollars in GST refunds were used to sustain the business during its decline. Trustee Andrew Yeo said extensive tracing of approximately $84 million had uncovered several transactions of interest that will be subject to further investigation.
Yeo is also examining whether Adgemis personally benefited from these GST transactions, an allegation the businessman denies. The investigation forms part of a broader effort to understand how funds were managed as the company struggled to remain operational.
Public Hospitality Group had expanded rapidly during the pandemic, relying on high-interest loans often secured against inflated property valuations, leaving the business heavily leveraged. Authorities allege Adgemis owes $162 million in tax, with total company liabilities potentially reaching hundreds of millions more.
The Australian Taxation Office previously rejected a proposal to repay creditors only a portion of what was owed, citing concerns about Adgemis’ alleged “extravagant lifestyle.”
A spokesperson said he has not yet been formally served with court documents but will comply with any legal obligations once notified, with no public comment made since administrators were appointed in October.
Source: Australian Financial Review
