Sydney pub magnate Jon Adgemis is working on a deal to pay staff and suppliers across several pubs and hotels that were recently seized by lenders.
According to The Australian, representatives for Adgemis presented a proposal at a creditors’ meeting on Wednesday, suggesting a deed of company arrangement (DOCA) to improve returns for staff and suppliers.
The proposed deal would allocate nearly $5.5 million to pay employees and suppliers at five venues taken over by US lender Muzinich, which appointed administrators last week.
Administrators are currently reviewing creditor and supplier claims, with total debts expected to exceed $20 million.
Under Adgemis’ potential DOCA, the 100-150 impacted staff could receive 100c in the dollar for wages and superannuation claims, though suppliers are likely to receive a reduced payout.
Muzinich is planning to sell the five seized pubs in the coming weeks. These properties include The Strand Hotel in Darlinghurst, Camelia Grove Hotel in Alexandria, Norfolk Hotel in Redfern, Oxford House in Darlinghurst, and the under-construction Exchange Hotel in Darlinghurst. They may be sold as a group.
Source: The Australian
