Melbourne businessman Joe Gutnick declares himself bankrupt

PROMINENT Melbourne businessman Joseph Gutnick declared himself bankrupt with debts of more than $275 million.

Businessman Joe Gutnick has declared himself bankrupt. Picture: Lindsay Moller

• Previously: Mining magnate Joseph Gutnick hits hard financial times

PROMINENT Melbourne businessman Joseph Gutnick declared himself bankrupt on Friday with debts of more than $275 million.

The move stopped India’s largest fertiliser collective, Indian Farmers Fertiliser Co-operative, bringing bankruptcy proceedings over a $54 million debt at a Federal Court hearing in Melbourne today.

Mr Gutnick, nicknamed Diamond Joe due to his extensive investments in diamond and gold projects, has appointed Gess Rambaldi and Andrew Yeo of Pitcher Partners as his trustees in bankruptcy.

The decision brings the curtain down on a colourful mining career that stretches back to the late 1980s.

Mr Gutnick’s legal fight with IFFCO, an organisation he had struck a $103 million partnership with in 2008, has left his fortune (estimated at more than $200 million two years ago) in tatters and forced him in to insolvency.

His personal bankruptcy follows a Victorian Supreme Court order winding up the company through which he struck the IFFCO deal, Legend International, made last month after an application by the Indian giant.

Associate Justice Randall made the June 6 order because even though the company was subject to bankruptcy protection in the US, where it is registered, the business was conducted from Mr Gutnick’s office on St Kilda Rd in Melbourne.

He denied Legend’s bid to have the Australian proceeding adjourned pending recognition by the Victorian Supreme Court of the US Chapter 11 bankruptcy proceeding.

Associate Justice Randall appointed Mark Korda and Craig Sheppard of KordaMentha as Australian liquidators.

Mr Gutnick’s office has been contacted seeking comment.