Embattled concert promoter Phil Rankine loses court bid to have $1.1 million debt set aside

Adelaide concert promoter Phil Rankine has 21 days to come up with $1 million after losing a court case over a Prodigy concert — or one of his companies could face winding-up proceedings.

• Phil Rankine is being sued for $4 million by overseas investors
• His company lost court case against Duxton Entertainment last month

Adelaide concert promoter Phil Rankine has lost a bid to have a $1.1 million debt related to two gigs, including a Prodigy concert, set aside.

The Federal Court last week rejected the application by Mr Rankine’s company Space Touring to have a $1.1 million debt owed to Duxton Entertainment set aside — and has awarded the company costs as well.

The development means that Space Touring now has 21 days to deal with the debt demand, or Duxton could launch winding-up proceedings.

The Federal Court case is separate to a Supreme Court case against Mr Rankine in which eight investors are chasing him for almost $4 million in debts related to the Florence and the Machine and Phil Collins concerts, also held in Adelaide.

Mr Rankine is bringing Elton John to Adelaide later this year, and has been the state’s pre-eminent concert promoter for a number of years.

Chugg Entertainment has previously assured The Advertiser that the Elton John concerts are not at risk.

Duxton Entertainment is part of a suite of companies managed by commodities trader Ed Peter, including two ASX-listed firms as well as the award-winning Crafers and Uraidla hotels.

Duxton Entertainment had put up capital to bankroll the Prodigy concert held in January, and the Supertramp concert held in February. It turned out to be one of the last Prodigy concerts before the death of frontman Keith Flint in March.

Duxton put up $727,500 for Prodigy, and $397,500 for Supertramp, with profits and losses to be shared between it and Mr Rankine’s company.

The late Keith Flint from British band The Prodigy performing in Queensland on their Australian tour earlier this year.

However, Mr Rankine’s companies have not repaid the money owed once the concerts were staged.

“As it transpired, the Supertramp concert was profitable but the Prodigy concert was not,’’ the court judgment says.

“Touring’s arguments turn not so much on the calculation of the sum payable to Duxton in respect of its investment in the concerts, but on the identity of the company that is liable to pay it.’’

Concert promoter Phil Rankine.

The court documents state that Mr Rankine argued that the money was owed by his other company, Space Production, not Space Touring.

But the judgment says that Mr Rankine also made a personal guarantee with respect to the debts, which was clear in the investor agreements.

Mr Rankine argued that because Duxton paid the money into a bank account operated by Space Production and not Space Touring, “Space Touring denies any indebtedness whatsoever to Duxton arising from the First Investor Agreement’’.

The judgment said it was clear that the money was to be used to finance the two concerts.

“Emails passing between (Duxton) and Mr Rankine clearly show that the payments and roll overs to which (Duxton) refers were referable to the financing of the Supertramp and Prodigy concerts,’’ it says.

The court’s original decision to dismiss Space Touring’s bid to have the debt set aside was affirmed, meaning the company remains liable for the debt.

Mr Rankine has been contacted for comment.

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