Sydney pub baron Jon Adgemis’ $1.5bn debt and zero savings

The former owner of a string of pubs across Sydney and Melbourne owes close to $1.5bn, according to bankruptcy trustees, amid warnings his fast cars, fancy clothes and $3.79 in the bank won’t be enough to settle his debts | Read the creditors’ list

Jon Adgemis owes almost $1.5bn to his creditors. Picture: David Swift

Jon Adgemis’ family will contribute $3m to a rescue plan that offers his lenders just 17c for every $1000 owed by the Sydney pub baron, whose bombshell bankruptcy report reveals he is personally almost $1.5bn in debt.

The one-time KPMG deal maker turned operator and owner of 22 pubs and hotels across Sydney and Melbourne presented a plan to try stave off potential insolvency.

But a report published by his bankruptcy trustees reveals Mr Adgemis has just $3.79 in cash at the bank, three luxury vehicles, a wardrobe of expensive clothes and two pieces of art. The cars, worth around $545,000, include a 2015 Range Rover, a 2021 Mercedes Benz G-Wagon (financed), and a 2022 Range Rover (also financed). He has about $9m in property, including a Rose Bay house that is subject to another dispute and seized by La Trobe Financial.

The bankruptcy trustees say the cars are only worth about $160,000, and dispute what the properties, including land zoned for a possible childcare centre development in Hurstville, could fetch at auction.

The estimated $1.42bn hole in his financials, measured by his assets minus his liabilities, for the first time reveals the extensive web of leverage holding together the businessman’s property and lifestyle interests.

Mr Adgemis, who was contacted for comment, offered to bolster the potential return of 0.17 of a cent in the dollar for creditors under his proposed rescue with the $3m family funded top-up.

He told the bankruptcy trustees he has $80.3m in secured debts, plus a further $1.34bn owed to unsecured creditors facing him. They counter that $23.5m is secured, and a further $1.5bn is owed to unsecured creditors, according to the report seen by The Australian.

The report’s scope also reveals Mr Adgemis has an $80m debt to the Australian Taxation Office, plus $21.5m in “related party claims”.

Mr Adgemis borrowed big to grow his pub empire which he one day hoped to float on the ASX.

Amid a $500m refinancing agreed with Deutsche Bank last year, one of Mr Adgemis’ backers, Muzinich, seized control of five pubs.

Liquidators reports lodged as part of this alleged much of Mr Adgemis’ pub business had been operating insolvently for years, with allegations he pulled $9m from the group through related entities.

Administrators had alleged the group had been insolvent between 2021 and 2023.

It will be difficult to realise any money from his designer wardrobe, the bankruptcy trustees advised creditors.

“We have made inquiries of an asset valuer who has indicated that generally designer clothing can be difficult to realise for substantial value unless it was a handbag or watch. We have not identified any such items,” the report said.

Creditors are also unlikely to see any money flow from the five venues still under control of Mr Adgemis, warning mezzanine loans amid a $379m debt pile on the pubs is in default.

“No repayment is expected to the balance of mezzanine lenders and convertible note holders,” the report adds.

Sydney lender Archibald Capital had offered to bail out Mr Adgemis’ other creditors through $6.7m in convertible notes issued as finance on several of the venues.

Jon Adgemis at his peak controlled a pub empire across Sydney and Melbourne.

He has ten matters before the courts.

As well as his $3.79 in a Westpac bank account, a negative $3008 balance in a NAB account, some of his cars were sold in the lead up to the bankruptcy appointment including a 2016 Mercedes GLA 180 sold to accountant and former Liberal candidate Alex Andruska for $49,890.

The report finds Mr Adgemis has no superannuation.

“We have been informed that whilst the debtor previously held funds in a SMSF, the full balance was depleted a number of years ago whilst he was still in his former role as a partner of KPMG,” the report said.

Mr Adgemis has played a colourful role in Australian deal making, including using a Dutch Caribbean registered company the Black Prince Private Foundation in the battle for control of infant milk company Bellamy’s. At its peak, Black Prince held $185m in proceeds.

Mr Adgemis proposed to settle his debts through a Personal Insolvency Agreement, with the benefit of his relatives’ assistance.

This would mean a $250,000 payment upfront, plus a further $500,000 cash within six weeks if creditors agree to the rescue plan at a meeting on August 1.

A further $1.25m is planned within six months, plus a $1m payment within 12 months.

Creditors might otherwise get nothing.

“At the date of this report, we are of the opinion that it would not be in creditors’ best interests for the debtor to present a debtor’s petition and become bankrupt as creditors would receive a nil return in a bankruptcy scenario,” the report said.

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Originally published as Sydney pub baron Jon Adgemis’ $1.5bn debt and zero savings