De Lago: Lake Bennett resort tipped into liquidation, estimated debts revealed

The company behind De Lago Resort on Lake Bennett, which closed earlier this year by order of NT Health, is alleged to have racked up enormous debt with the tax office and not paid employee benefits.

Andrew Gunn shortly before reopening Lake Bennett Resort as De Lago Resort on Lake Bennett in 2021. Picture Katrina Bridgeford.

The company that operated De Lago Resort on Lake Bennett, which closed earlier this year by order of NT Health, is alleged to owe a large debt to the tax office and not paid employee benefits.

Company and sole director Andrew Gunn placed LBR (NT) Pty Ltd into liquidation on May 29, having earlier foreshadowed the move when contacted by this masthead.

According to a preliminary report by liquidator Dominic Cantone, of Oracle Insolvency Services, the company is estimated to have incurred debts of at least $867,639.

It’s understood this does not include customers of the resort who had paid deposits for accommodation that were unable to be fulfilled because of the cessation of operations flowing from the public health order being slapped on the business due to allegedly non-compliant drinking and wastewater systems.

According to Mr Cantone’s report, the company is estimated to owe $170,000 to landlord Carolyn Reynolds, $53,062.39 to Jacana Energy, $297,662.38 to the Australian Taxation Office by way of tax liabilities, and a further $154,067.16 by way of unpaid employee superannuation benefits.

De Lago Resort on Lake Bennett. Picture: Katrina Bridgeford.

Other alleged Territory creditors include Beaver Brewery, Arctic Ice, Absolute Coffee, Asian United Food, Coomalie Council, Crystal Pools, Ensign Darwin, Gasman, Harvey Distributors, and Prime Meats.

According to the report, the company has just $550 cash at bank and trade debtors worth $11,627.

Any vehicles or plant and equipment held in the company name are yet to be assessed, but Mr Cantone told this masthead that he did not expect to realise much value from what is held.

“We might be able to claim for any improvements to the site, but it’s not one of those things where the company has a lot of machinery that digs holes,” he said.

Lake Bennett landlord and former operator Carolyn Reynolds is alleged to be owed an estimated $170,000 from LBR (NT) Pty Ltd. Picture: Facebook

Mr Cantone said from his initial assessment, it appeared as though the company was operating with one hand tied behind its back due to strict limits to the maximum number of holiday-makers allowed on-site at any given time.

It’s understood these restrictions were due to a public health notice issued by NT Health in 2022 and restricted cabin occupancy to 50 guests, with an additional 40 guests in the restaurant.

Mr Cantone said he believed these limitations were far stricter than those previously required of the business when Ms Reynolds operated it as Lake Bennett Resort.

“When you’ve got 20 staff and 30 customers, it’s impossible to make any money or get anywhere,” he said.

“That was its main derailment, he was only ever trading at 20 per cent of his capacity.”

Mr Cantone said he didn’t believe there was a “heap of money” that had been collected from prospective guests who had paid deposits or in full for bookings that could now not be fulfilled.

Mr Gunn was contacted for comment.

A backpacker who formerly worked at De Lago and asked to stay anonymous claimed that super was unpaid as far back as last year.

“A lot of us make a claim to the ATO but haven’t heard anything, and now with the health department shutting down the resort, we don’t know what’s going to happen with our money,” she said.