Several associates and former executives connected to the failed hospitality entrepreneur Jon Adgemis will not face examination in the ongoing bankruptcy investigation after trustees were unable to serve them legally. This development comes amid administrator warnings that Mr. Adgemis’s hospitality empire was fundamentally insolvent, leaving creditors unlikely to recover any funds.
A second creditors’ report released last Friday by KordaMentha, acting as administrators for the JAGA Group—which controlled Mr. Adgemis’s Public Hospitality business—highlighted that the group was deeply insolvent well before its collapse last year. The hospitality interests tied to Mr. Adgemis eventually collapsed with debts exceeding $1.8 billion, a bankruptcy process initiated primarily by actions from the Australian Taxation Office.
KordaMentha’s review found inconsistencies in the financial records of the collapsed entities. The report alleges that former directors Rodd Boland and Jon Howarth failed to provide complete financial statements during the administration process. Mr. Boland, who is Mr. Adgemis’s brother-in-law and was a director of many of the insolvent companies after previously working at KPMG, avoided being served by bankruptcy trustees and will consequently not be required to attend the upcoming public examination.
A list of individuals summoned for questioning includes Mr. Adgemis himself and several key advisers and family members. Among Mr. Adgemis’s siblings, Despina Adgemis is reported to have been served, though she disputes this claim, while Christine Walker was not served. Bankruptcy trustee Andrew Yeo of Pitcher Partners is seeking to examine numerous individuals as part of his inquiry aimed at determining whether Mr. Adgemis holds additional undisclosed assets beyond shares and cash previously disclosed.
Damien Hodgkinson, principal of Olvera Advisors, who assisted Mr. Adgemis leading up to the bankruptcy, is scheduled to appear. Hodgkinson has a longstanding professional relationship with Mr. Adgemis dating back to their time at KPMG Australia and served as a director of key related businesses including the Linchpin Group—a food and beverages company that operated multiple venues linked to the collapsed hospitality group.
However, former Linchpin Group chief Terry Soukoulis will not appear despite trustees’ efforts to examine him. He had a $1,100 loan from Mr. Adgemis’s failed companies and now manages a pubs operation linked to Sydney funds manager Tom Wallace. Trustees were also unsuccessful in serving Mr. Wallace.
On the other hand, Tim Cook, liquidator from Balance Insolvency who oversaw the winding up of several companies previously controlled by Mr. Adgemis, has been served and will attend. Lawyer Chris Dalton is also expected to appear.
Attempts to serve Mr. Adgemis’s former financial controller Alex Andruska, who reportedly received a car from Mr. Adgemis upon their professional separation and most recently worked in the office of Senator Andrew Bragg before leaving last Friday, have been unsuccessful. In addition, former business partner David Drummond and Byron Bay property investors Thomas Misner and Nakita Misner have not been served. Trustees and liquidators are also investigating their involvement in assets under scrutiny.
The examination intends to clarify the complex financial circumstances surrounding Mr. Adgemis’s bankruptcy and recover potential assets for the vast number of affected creditors.