Public Hospitality Group’s (PHG) Jon Adgemis is looking for a new deal to save his struggling pub empire after a $500 million refinancing with private lenders, Bain Capital, fell through.
According to The Australian, Adgemis is now seeking to reorganise the debts across his group of almost 22 pubs and other properties, in a deal which would see the group rolled up into one debt package.
Adgemis is now also understood to be working with a group of lenders backing Public Hospitality to redraw the debts of the pub group.
Bain had been set up to fund the group’s new debt arrangement, which would have folded over about $500 million in loans from various current lenders.
However, Bain ruled the transaction dead over the weekend after demanding a hefty upfront financial investment from Adgemis’ firm.
“PHG has not complied with the terms of the agreement and so the agreement is now at an end,” Bain said.
KordaMentha’s intervention was viewed as unusual by some lenders, considering the insolvency firm’s close ties to Bain after working on Virgin Airlines’ reorganisation.
Public Hospitality has sought to negotiate its refinancing through Sydney private debt investment house Madigan Capital.
Madigan chief operating officer Chris Winslow said questions relating to the debt deal should be directed “through to our client, Bain Capital, instead of Madigan Capital”.
Source: The Australian
