A crucial vote on Jon Adgemis’ proposed personal insolvency agreement has been pushed back to October 9, after his bankruptcy trustees adjourned last Friday’s creditors’ meeting without a resolution.
The embattled publican, who owes around $1.8 billion, had put forward a deal that would return creditors just 0.15 cents in the dollar, partly funded by a $3 million contribution from his mother and sister.
The Australian Financial Security Authority (AFSA) intervened, warning trustees Scott Pascoe and Benjamin Ho they risked fines of $39,600 or up to two years in jail for failing to conduct adequate investigations or meet communication standards.
AFSA’s inspector-general Neville Matthew said the trustees’ handling “necessitates the Inspector-General taking further steps to maintain the integrity of the personal insolvency system,” adding they failed to confirm whether Adgemis made false declarations, properly examined his funding of litigation, or detailed security over family contributions.
Adgemis, who built the Public Hospitality Group empire, has denied misleading creditors, with a spokesman insisting: “We have provided all the information required by the trustees. Any initial oversights have since been addressed voluntarily to the satisfaction of the trustees.”
Creditors will require 75 per cent approval by dollar value to accept the deal and prevent Adgemis from being declared bankrupt and banned from running companies.
This news comes as Adgemis’ Rose Bay home has also hit the market under mortgagee possession. Purchased for $4.45 million in 2018, the six-bedroom property carries significant caveats and remortgages totalling $26.9 million, leaving no equity for creditors.
