Bankruptcy trustees have initiated Federal Court action to conduct a rare examination of failed pub baron Jon Adgemis, probing the collapse of his estimated $1.8bn financial empire and the whereabouts of remaining assets.
Pitcher Partners trustee Andrew Yeo filed the application on April 10 as part of efforts to investigate how Adgemis’ debt-laden Public Hospitality Group unravelled, with the matter yet to be listed for hearing.
The examination would see Adgemis questioned in court by lawyers over his financial dealings, asset transfers and the broader failure of his hospitality expansion strategy, which saw him acquire 22 pubs across Sydney and Melbourne.
Adgemis, a former KPMG partner and Cranbrook Old Boy, was declared bankrupt in October last year amid debts exceeding $1.8bn owed to around 800 creditors.
The Australian Taxation Office ultimately blocked his voluntary bankruptcy bid and appointed Yeo as trustee after stepping in over debts exceeding $162m.
A second related application has also been lodged by insolvency firm BRI Ferrier, which is managing several entities linked to his collapsed business group.
Experts say such examinations are uncommon due to their cost, but in this case creditors argue the scale of the debt justifies scrutiny.
“The first is to establish how this was allowed to happen?” one bankruptcy trustee said. “There are likely massive financial impacts suffered by the creditors that won’t be paid and they will face their own solvency issues.”
The trustee overseeing the case said the process would provide an “X-ray into Adgemis’ affairs”, potentially extending to family members and associates, and aimed at identifying remaining assets and complex transactions.
Recent reports to creditors show only $194,617 has been recovered so far. The trustee has also raised concerns over Adgemis’ financial activity since 2021, including alleged false GST refund claims totalling at least $84 million and funds allegedly moved to Italy.
Source: Daily Telegraph.
