Jon Adgemis completes $600,000 payment as $6.7m question hangs in the balance

Jon Adgemis’ lenders Archibald Capital are expected to trigger a $6.7m convertible note by July 31, aimed at paying more creditors of the collapsed pub business.

Pub baron Jon Adgemis has handed over the remaining cash owed to staff from his former Public Lifestyle Management operation. Picture: David Swift/NCA NewsWire

Sydney pub baron Jon Adgemis has handed over the remaining cash owed to staff from his former Public Lifestyle Management operation, with the deadline on a further $6.7m payment now looming.

Administrators BDO have told creditors that Mr Adgemis has paid his $600,000 contribution to a rescue deal for his former pubs business.

The cash contribution comes on top of an earlier $400,000 handed over by Mr Adgemis in February under the terms of a deal struck late last year to make almost 150 staff whole for unpaid superannuation and wages.

Mr Adgemis was due to complete his payment in March, but this was extended to April, before only part payment was managed. 

BDO said it would now start distributing cash to former staff via an interim dividend.

Verification of outstanding superannuation payments will take place with the Australian Taxation Office, after which staff will be paid.

Records showed staff were owed a total $4.5m in leave and other entitlements when the pub group was placed in administration.

BDO administrator Duncan Clubb said further correspondence will be issued in coming weeks, including estimated dividends.

“The director, Jon Adgemis, has asked us to notify creditors that he is pleased to have achieved this milestone and looks forward to the satisfaction of the future DOCA obligations,” Mr Clubb told creditors.

“He would also like to thank the Public staff for their patience and significant contribution to Public over its trading period.”

However, the debt rescue deal is now hinging on a $6.7m convertible note from Mr Adgemis’ key financial backer Archibald Capital.

The Sydney funder, led by Ben Madsen, has backed Mr Adgemis’ remaining venues, including offering up finance for the former KPMG deal-maker to complete renovations.

Noahs Backpackers in Bondi Beach.

This includes a 19-room boutique hotel, The Flinders in Sydney’s Darlinghurst, as well as the Exchange in Balmain and the Bondi backpackers formerly known as Noah’s.

The $6.7m convertible note will be triggered on July 31 and converted to cash by September 30.

BDO said it would provide an update “regarding compliance with this final milestone” in October.

At his peak, Mr Adgemis controlled more than 22 venues across Sydney and Melbourne.

However, his dreams went awry after a refinancing deal by the Sydney entrepreneur and funders Deutsche Bank.

American lenders Muzinich scooped up nearly $100m in debt tied to Mr Adgemis, before moving in September last year to tip five venues into administration amid a dispute with the pub baron.

Other lenders have since moved in to strip Mr Adgemis of control of pubs and property that formed part of his hospitality play.

One of Mr Adgemis’ funders, GEMI Investments, has told investors nearly 14 per cent of its loan book is locked up in projects under his control, cautioning they were unlikely to be recovered until the second quarter of 2026.

Hospitality operators Linchpin Group have since taken over the running of most of the remaining venues.

Mr Adgemis has been contacted for comment.