Sam Mitchell appoints administrator to his own firm

Administrators have taken control of WealthCheck, but creditors are warning attempts by Sam Mitchell to stave off a collapse of his agribusiness group will be challenged.

WealthCheck boss Sam Mitchell has been grounded by the collapse of his cattle business.

Aspirational cattle baron Sam Mitchell – who the Australian Taxation Office alleges owes tens of millions of dollars and failed to pay wages – has appointed his own administrator to try salvage one of his businesses.

Mr Mitchell has lodged documents to appoint Brisbane-based Worrells Mervyn Kitay to work through a potential turnaround strategy, but this move is likely to be blocked by several creditors to Mr Mitchell’s WealthCheck Management and The Edge who are understood to want the companies wound up.

Last week the Tax Office launched court action against Mr Mitchell’s WealthCheck, alleging more than $4m was owed in unpaid taxes and superannuation contributions.

Worrells senior manager Kylie Kissell said administrators were “presently reviewing the financial position of the company and the circumstances leading up (to) our appointment” noting a report to creditors was likely to land in early July. “I further confirm that the appointment does not relate to any other entities in the group,” she said.

Mr Mitchell has made a name for himself in recent years signing Australia’s biggest cattle station deals, worth more than $500m, with big names in business including Brett Blundy, Harold Mitchell and Eddie Listorti.

WealthCheck boss Sam Mitchell.

Many of these widely publicised transactions failed to complete but their reportage gave potential new investors confidence in his credentials.

The Bondi resident who is a member of the North Bondi Surf Club has traded on his former links with the Harvard Endowment Fund, as well as working with well known agricultural real estate dealer Danny Thomas from LAWD. Mr Thomas and Mr Mitchell have also been directly involved in business, setting up a cattle company.

LAWD would not comment on the ethics of one of its founders working both sides of real estate transactions and a Harvard spokesman refused to expand on Mr Mitchell’s time working for its agricultural fund in Australia.

Worrells has now provided an early update to some staff and lenders to WealthCheck, noting administrators were hopeful of proposing a deed of company arrangement, which could see Mr Mitchell present a rescue plan for the group.

Documents show WealthCheck management report at least $6m in liabilities set against almost $3.1m in assets, of which just $2736 was cash at bank.

A report from Worrells shows Mr Mitchell paid administrators $35,000 to cover upfront fees.

The Worrells report show administrators are investigating potential insolvent trading by directors, noting the group has “no previous dealings or professional or personal relationship with the company, its director or secured creditor”.

A meeting of creditors will take place on June 19.

But some creditors said they thought it unlikely any DOCA could be reached for WealthCheck given the massive debts owed across the company and associated entities of Mr Mitchell and his wife Andrea Miller.

Sources indicated tax debts across companies linked to Mr Mitchell and Ms Miller could exceed $9m. This includes one company currently on a payment plan with the ATO over a $1.25m debt.

Lenders are owed millions on cattle properties connected to Sam Mitchell. Picture: Zoe Phillips

ADM Capital is also in pursuit of Mr Mitchell, after the Hong Kong lender, which extended an $18m financing line to cattle companies under his control, appointed Cor Cordis to pursue claims against The Edge, the parent company of the WealthCheck group.

ADM Capital is also personally seeking to bankrupt Mr Mitchell in the NSW Supreme Court, with the matter to be heard on June 21.

Lender Rabobank is owed millions after lending cash to agribusinesses controlled by Mr Mitchell.

The 47-year old has purchased a swath of avocado, citrus, cropping and cattle properties across the country, touting a life as a successful businessman.

But sources have indicated Mr Mitchell and companies he controls have run up bills across the country, with suppliers and staff claiming millions in unpaid wages and bills.

Several recent purchases involving Mr Mitchell have also soured, with the 521,883ha Limbunya Station and the 147,300ha Maryfield Station for sale through Mr Thomas’s LAWD.

The stations come with attached new carbon projects, expected to generate a combined 10.4 million Australian Carbon Credit Units (ACCUs) during a 25-year crediting period.

Sources said they feared the sales of Limbunya Station and Maryfield were likely to lead to a shortfall of funds, which would not cover ADM Capital’s debt position on the properties.

Mr Mitchell’s latest property plays have seen him attempting to mix cattle and carbon projects, registering a number of projects with the Clean Energy Regulator

Mr Blundy, the retail billionaire, sold his massive cattle property Walhallow to Mr Mitchell’s WealthCheck for $250m in 2022.

But the deal fell over with Mr Blundy saying it was “disappointing” that WealthCheck “couldn’t perform.”

It is understood issues with Mr Mitchell have been raised with the corporate regulator.