Sam Mitchell given until July 3 to propose rescue plan for WealthCheck

Would-be cattle baron Sam Mitchell has been given until July 3 to come up with a rescue plan for his WealthCheck business after a meeting of creditors on Wednesday.

WealthCheck was placed in administration last week by Sam Mitchell after the Australian Taxation Office moved to bring the company to court.

Would-be cattle baron Sam Mitchell has been given until July 3 to come up with a rescue plan for his WealthCheck business after a meeting of creditors on Wednesday.

Worrells administrator Mervyn Kitay told creditors Mr Mitchell was investigating proposing a deed of company arrangements for staff from his WealthCheck Management business, a key pillar of the former Sydney businessman’s agricultural empire.

The closed meeting came after several staff had walked away from Mr Mitchell’s WealthCheck business in recent weeks amid weeks of missed pay and months of missing superannuation payments.

Few staff remain working for the business.

WealthCheck was placed in administration last week by Mr Mitchell after the Australian Taxation Office moved to bring the company to court and place it in liquidation amid millions of dollars in unpaid taxes and superannuation.

But creditors told The Australian they doubted a rescue plan could be reached for the business, saying that although WealthCheck claimed millions of dollars in unpaid trade debtors, which could be used to settle outstanding debts, it was almost certain they would not be paid.

An early report to creditors shows Mr Mitchell’s WealthCheck Management had just $2736 in cash at the bank at its collapse, while facing at least $6m in debts set against just $3.1m in ­assets, of which more than $2.7m are trade debtors.

However, some creditors questioned these figures, suggesting to The Australian they did not represent the vast array of companies clamouring for cash.

The Australian understands much of the $2.7m in trade debts flow from a related company, Wealthcheck Finance, which in turn is reportedly owed money from American agriculture investors who are in dispute with Mr Mitchell over the handling of ­investments in Australian farm assets.

This publication has spoken to several investors who alleged their investments had been mismanaged and farms they had bought had been allowed to be run down, with little investment or upkeep.

WealthCheck boss Sam Mitchell.

Several farms purchased by Mr Mitchell are on the market, including the mammoth Limbunya and Maryfield cattle properties purchased in 2022 for a combined $103m.

If no acceptable deal is presented to creditors at a July 3 meeting, it is expected Mr Mitchell’s WealthCheck business would be wound up and liquidated, marking the latest in a string of failed companies.

The ATO, which attended Wednesday’s creditors meeting, may prove the deciding factor with the tax office owed millions and director penalty notices hanging over Mr Mitchell.

An ATO spokeswoman declined to comment, citing “our obligations of confidentiality and privacy under the law”.

Mr Mitchell did not respond to requests for comment, but when reached by The Australian last week responded with only “hello”, before hanging up.

The pursuit of Mr Mitchell may mark a nadir for the businessman who made a name for himself signing deals to buy more than $500m in farms and agricultural assets.

However, documents reveal despite trumpeting these deals many of the transactions failed to eventuate with creditors reports revealing vendors repeatedly chasing entities linked to Mr Mitchell over unpaid settlements.

The final blow to Mr Mitchell came after the ATO lobbed court claims against the businessman on June 4, seeking to wind up his WealthCheck business over more than $4m in unpaid superannuation and taxes.

Creditors documents show Mr Mitchell’s advisers met with administrators just two days after, with Seer Financial Group advisers John Thompson and James Hillgrove alongside Mendelawtiz Morton Commercial Lawyers director Ben Morton representing the businessman.

Mr Mitchell and his advisers again met with Mr Kitay and fellow Worrells staffer Kylie Kissell on June 7, before placing the company into administration.

However, several companies have indicated they have been frustrated by the manoeuvres around Mr Mitchell’s businesses, with many still not captured by the pursuit of lenders and the tax office.

Chunks of Mr Mitchell’s business interests have been placed in the control of liquidators or administrators, with KordaMentha and Cor Cordis between them holding a string of cattle properties and The Edge TC, a key entity in Mr Mitchell’s dealings.

Cor Cordis’s appointment over The Edge comes as lender ADM Capital chases Mr Mitchell over $50m in debts, from a mezzanine financing arrangement used to purchase several cattle properties.

ADM is also personally pursuing Mr Mitchell in the NSW Supreme Court as it seeks to bankrupt him. This case will be heard on June 28. Rabobank is also in pursuit of Mr Mitchell over several loans in default.