The Australian Taxation Office (ATO) has taken over bankruptcy proceedings against Sydney pub baron Jon Adgemis, who allegedly owes more than $1.8 billion, including $154 million in tax penalties.
The Federal Court in Sydney approved the ATO as the lead petitioner, replacing former backer Richard Gazal. The move significantly increases pressure on the ex-KPMG dealmaker, whose Public Hospitality Group is now in administration.
KordaMentha has been appointed administrator, while McGrathNicol has taken control of five venues -including the Empire Hotel in Annandale and Diplomat Hotel in Potts Point – with plans to sell assets and continue limited operations.
Justice Elizabeth Raper granted Adgemis a short extension to respond to the case but rebuked his team for delays. The court heard his debts stem from multiple companies and alleged fraudulent GST refunds, with creditors offered just 0.15 cents in the dollar.
Source: The Daily Telegraph
