Former Gold Coast funds supremo Peter Drake now officially bankrupt

HE owes more than $300 million but former fund tsar Peter Drake says all he has is about $1000 in the bank, a $500 block of land and two second-hand cars.

LM founder Peter Drake at work in his Surfers Paradise office.

A BLOCK of land worth $500 which is conservation zoned and goes under water when it floods, two second-hand cars and just over $1000 in the bank.

They are the only assets former funds tsar Peter Drake says he has left to his name.

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He owes a long list of creditors more than $300 million, but none will now be repaid.

The 59-year-old founder of the former global investment empire LM Investment Management is now officially a bankrupt.

Mr Drake voluntarily filed for bankruptcy last Friday, heading off an action by liquidators KordaMentha, which had launched court proceedings seeking to bankrupt him over a $22 million loan.

Jason Bettles and Raj Khatri, of Worrells, have been appointed Mr Drake’s joint trustees.

The former high-flying businessman, who once headed an empire which boasted $3 billion in funds under management before its collapse in March 2013, in his statement of affairs lists his assets as a block of land on Russell Island worth $500 which is zoned conservation and half of which is in a flood plain, a 1983 Leyland Mini Moke worth $500, a 2005 Toyota RAV4 worth $5000, and just $1377.42 in three bank accounts.

The New Zealand-born businessman lists a four-bedroom house in Fiji worth $F200,000 ($A124,176) as part of his assets but says this is held in trust for his three children under a property settlement with his ex-wife Belinda.

The funds founder, who once called a beachfront mansion in Millionaires’ Row at Albatross Ave home, is now living in a rented unit in the Soul supertower in Surfers Paradise and lists his occupation as “consultant to an insurance company business”.

The former finance executive, who started out selling insurance, now works for insurance company Australian Global Insurance Services, based in Surfers Paradise.

Mr Drake’s debts include the $22.5 million loan from the LM Managed Performance Fund.

Another creditor is Maddison Estate, Mr Drake’s former flagship $1 billion residential project at Pimpama, over which he gave a $249 million personal guarantee.

His former Broadbeach restaurant Lauxes is owed $60,000 while Somerset College is owed $37,000 in school fees for his children.

Mr Drake yesterday said he did not want to comment.