A rescue plan for Jon Adgemis’ Linchpin Group (formerly Public Lifestyle Management – a key pillar of his Public Hospitality Group), has been approved despite a last-minute attempt by the Australian Taxation Office (ATO) to block it.
Adgemis, a former KPMG deal-maker, must pay $400,000 by Friday, January 10 to finalise the deal, which aims to settle $64 million in debts with a $7.7 million plan, including a $1 million cash payment and a $6.7 million convertible note from Archibald Capital.
While staff will receive full entitlements, unsecured creditors will only recover 13.3 cents on the dollar.
The plan covers only part of the group’s debts, and if Adgemis fails to meet payment conditions by March 2025, the deal may collapse.
Adgemis is also facing legal battles, including a court case with his former business partner, Peter Crinis, and multiple claims from lenders, such as Milbrook and Angas Securities, over properties and assets. Adgemis’ yacht has also been seized.
Despite approval, concerns about financial mismanagement, including allegations of withdrawing $9 million from the business, remain unresolved.
Source: The Australian Business Review.
