Sydney pub baron Jon Adgemis defends $9m transactions amid insolvency claims

·

Sydney pub mogul Jon Adgemis has rejected claims by administrators that he withdrew $9 million from his struggling hospitality business, arguing that the transactions were intended to support the company.

    In response to an administration report by BDO Business Restructuring’s national leader Duncan Clubb, Adgemis insisted that he did not derive “any personal benefit from those transactions.”

    The BDO administrators highlighted $9 million in funds taken out of Adgemis’ pub business in the year leading up to their appointment, suggesting the transactions “may constitute uncommercial transactions.” Additionally, they allege Adgemis extracted $475,000 from the business since becoming a director on 6 November 2023.

    Administrators have advised creditors to liquidate Adgemis’ businesses, which were taken over by lenders due to a $100 million debt dispute. This recommendation comes despite Adgemis proposing a deed of company arrangement to fully repay certain creditors for his five pubs.

    Public Hospitality Group’s (PHG) Jon Adgemis
    Public Hospitality Group’s (PHG) Jon Adgemis. Photo: The Australian.

    A spokesperson Adgemis stated on Thursday that a supplementary report for creditors is expected to provide clarity on his deed of company arrangement compared to the uncertainties and potential losses of liquidation.

    The $9 million identified by BDO represents a “subset of transactions in respect of intercompany transfers between the property group,” the spokesman explained, clarifying that Adgemis had not personally benefited from the transactions, which were directed towards legitimate business expenses.

    The spokesman added that the transactions were carried out under the direction of lenders to the property companies and Public Lifestyle Management (PLM), the employment entity of the pub group.

    Adgemis’ company, JAGA, is now a “net creditor” to the companies in administration, potentially owed up to $13 million.

    Source: The Australian.

    Advertisement

    Share:

    KEEP UP TO DATE WITH TGH

    By subscribing you accept our Terms of Service and Privacy Policy.

    Advertisement

    Latest News

    From crisis to compassion: Timos Roussos and his family’s mercy mission in war-torn Cyprus

    When Turkish troops landed on Cyprus on 20 July 1974, six-year-old Timos Roussos was sitting on the floor of his family’s home in Lemesos.

    A granddaughter returns: Georgia Georgiou retraces her yiayia’s occupied village in Cyprus

    When Georgia Georgiou handed over her Cypriot ID at the border checkpoint to cross into occupied northern Cyprus, she felt an ache.

    ‘You never get over it’: A childhood shattered by the Turkish invasion of Cyprus

    On a warm July morning in 1974, 10-year-old Anastasia Di Loreto (née Karatzia) was jolted awake by the sound of bombs falling on Kyrenia.

    Cyprus: The paradox of tolerance and impunity for Turkey

    The lack of a unified, systematic and practical strategy on the part of Greece has led the Cyprus crisis into national disarray.

    Lost homes and lingering hope: Greek-Cypriots reflect on Turkish invasion and its aftermath

    From hidden stories to haunting memories, two Greek-Cypriot men share what it means to carry the burden of Cyprus’ past.

    You May Also Like

    TGH Exclusive: A Greek’s journey to Australia amidst coronavirus restrictions

    These days, when the coronavirus nightmare has expanded like a bubble over the earth, Manos Lianopoulos left his "safety belt" in Athens.

    Passenger traffic in Greek airports sees all time high

    The Civil Aviation Authority data showed on Wednesday that Greek airports posted an all-time high in terms of passenger traffic last year, amounting to almost 65.4 million, up 5 percent from 2018.

    Archbishop Makarios of Australia meets with Greece’s Defence Minister

    His Eminence Archbishop Makarios of Australia held a meeting with Greece's Minister of Defence, Nikos Dendias, on Wednesday, June 11.