Lake Bennett resort: De Lago owner Andrew Gunn signs personal guarantees to stave off wolves

The owner of a doomed Lake Bennett holiday spot says he is “desperately trying to avoid bankruptcy” amid the financial ruin he claims was caused by a heavy-handed and pernickety health department.

De Lago Resort on Lake Bennett owner Andrew Gunn says he has been burnt as badly as anyone by the collapse of his business. Picture: Katrina Bridgeford.

The owner of a failed Top End resort, a South Australian publican, says he is in a desperate fight to stave off bankruptcy after a new report revealed the company director had signed multiple personal guarantees in a bid to keep the wolves at bay.

De Lago Resort at Lake Bennett, opened in May 2021 by publican Andrew Gunn, entered liquidation on May 29 this year, two months after being closed by operation of a public health order issued by NT Health.

The order related to allegedly non-compliant drinking and wastewater systems at the resort, a long-running issue that also plagued the previous business, Lake Bennett Resort, which was operated by landlord Carolyn Reynolds.

Ms Reynolds, who was contacted for comment, is owed $170,000 in the collapse of Mr Gunn’s company, LBR (NT) Pty Ltd.

The Australian Taxation Office is owed $215,590.76 in fulfilment of unpaid employee superannuation (priority creditor), while other creditors include the ATO again by way of unpaid tax, Jacana Energy, Coomalie Council, Ensign and Elgas Ltd (unsecured creditors).

A new report filed with corporate regulator ASIC by liquidator Dominic Cantone says the company’s debts have been assessed as an estimated $827,289.

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

Mr Cantone, in his report, said he also believed “former employees may be owed unpaid employee entitlements,” and if so, they would be able to access the commonwealth’s Fair Entitlements Guarantee scheme (which covers leave and wages, but not superannuation).

No dividends are expected to be paid to any class of creditors.

Mr Gunn told this masthead on Sunday he continued to blame NT Health “100 per cent” for the predicament he faced.

“There’s no reason why it can’t operate,” he said.

“I’m stuffed and it’s just such a shame, I worked 100 hours a week for nearly four years and all I’ve gotten from it is pain.

“I’m desperately trying to avoid bankruptcy but I might have no other options.”

He claimed he had invested $500,000 of his own money upgrading the site in an attempt to satisfy the department’s public health division, which had set a cap of 50 holidaymakers on-site at any given time due to the alleged water system failures.

De Lago Resort on Lake Bennett owner Andrew Gunn in happier times. Picture: Katrina Bridgeford.

Mr Gunn said he commissioned Winnellie-based firm Architectural Water Solutions to write a report certifying that the septic system could handle up to 220 patrons but to no avail.

He acknowledged his staff had been left in an “unfortunate” position.

Mr Cantone, in his report, confirmed he would not investigate whether the company had traded while insolvent, in which case Mr Gunn could theoretically be held liable for some of its debts.

Mr Gunn was not the registered owner of any residential properties in South Australia or the NT, and it was understood he had “signed various personal guarantees which could also mean that it is not viable to pursue an insolvent trading claim against him,” Mr Cantone wrote.

In a previous report of Mr Cantone’s, he revealed he had been involved in seven prior liquidations involving companies solely owned and directed by Mr Gunn.