Best-case scenario not good for creditors of failed Brisbane hospitality identity Damian Griffiths

UNDER the best-case scenario, creditors of failed Brisbane hospitality identity Damian Griffiths will claw back just 5 cents on the dollar – with the best chance to recover money lying in a couple of apartments in Paris.

Damian Griffiths estimated his debts at $3.86 million but his bankruptcy trustee say they could be much higher. Picture: Steve Pohlner

UNDER the best-case scenario, creditors of failed Brisbane hospitality identity Damian Griffiths will claw back just 5 cents on the dollar.

That grim assessment emerged this week in the first detailed report produced by his bankruptcy trustee, Worrells operative Raj Khatri, who Griffiths appointed last month as his bank accounts dwindled to less than $2000.

The Doughnut Time entrepreneur estimated his debts at $3.86 million, including a $1 million penalty from the tax man.

But Khatri’s report shows the debts will most likely end up between $5.12 million and $6.88 million—and could go even higher as a result of the number of personal guarantees provided by Griffiths, who has gone to ground in his hometown of Dalby.

Khatri’s best opportunity to recover money lies in Paris, where Griffiths owns two heavily-mortgaged apartments together worth about $1.4 million.

Damian Griffiths estimated his debts at $3.86 million but his bankruptcy trustee say they could be much higher. Picture: Steve Pohlner

The reports reveals that Khatri might be able to recover $508,000 (minus legal and selling costs) from the sale of the properties.

But that depends on whether he can void a $1 million third mortgage registered over both properties by Griffiths’ father in January, just eight weeks before Khatri’s appointment.

“I will likely require legal advice in respect of the validity of the mortgage,’’ the report says.

“I queried Mr Griffiths on the nature, timing and details of the loaned monies….Mr Griffiths indicated that the funds advanced to him were over a period between April 2003 and May 2017 and were utilised for a combination of living and business-related expenses.’’

Griffiths, whose empire included Les Bubbles bistro, Limes Hotel, Alfred & Constance bar and Chester Street Bakery, did not respond to a request for comment yesterday.

Meanwhile, NAB-appointed receivers and their CBRE agents will start sifting through offers for the Limes Hotel and Alfred & Constance bar once an expressions of interest campaign closes on Thursday.

Receivers will begin sifting through offers for the Limes Hotel at Fortitude Valley after an expressions of interest campaign closes on Thursday.

RESURFACING

We haven’t heard a thing about Richard Wankmuller since he disappeared suddenly as CEO of Cardno in mid-2016.

His shock resignation from the embattled Brisbane engineering consultancy for unspecified “family and health’’ reasons after just 13 months on the job raised quite a few eyebrows at the time.

It followed Cardno’s $176 million full-year loss.

But Wankmuller, who pocketed a $950,000 payout in lieu of notice, stayed busy under the radar and now he’s resurfaced from early semi-retirement.

Starting on Monday, the American bizoid will take over as CEO of the $10 billion inland rail program run by the Australian Rail Track Corporation.

Former Cardno chief Richard Wankmuller will take over as the CEO of the $10 billion inland rail program run by the Australian Rail Track Corporation. Picture: Mark Calleja

Wankmuller, who will relocate from Noosa to Brisbane for the job, told City Beat yesterday that he was “really excited’’ about the task of overseeing the 8500km rail network.

Asked how he could reconcile the reasons for leaving Cardno with his new role, he said it was “an entirely different thing’’.

“It’s two years later and I’m a lot healthier,’’ the 60-year-old native New Yorker said. “The last job was 24 hours and global’’

Pressed for details, he demurred. “It’s a pretty personal thing. Just what you see in traditional hardworking males. There are no dark secrets about it.’’

After parting ways with Cardno, Wankmuller did a bit of consulting for infrastructure projects around Australia and overseas.

Last year, he took on the chairman’s role with Mercy Ships Australia, a global charity that dispatches hospital ships to developing nations.