Events business linked to Forbes Australia founder and owner in rescue plan
The events company connected to Forbes Australia, which brought out speaker Tony Robbins, has put forward a rescue plan after being plunged into administration by unpaid tax debts.
An events business, owned by Forbes Australia’s parent company and formerly run by the luxury magazine’s boss Michael Lane, will pay creditors 16c in the dollar under a proposed rescue plan after collapsing into administration in January amid allegations it may have traded while insolvent.
Success Resources Australia, which formed the local arm of global events business Success Resources Global, was placed into administration after failing to pay $93,622 in tax debts.
The events business was run by Mr Lane from 2013 to 2021, who also controlled the formerly ASX-listed Success Global Media, and hosted several speaking tours involving Virgin entrepreneur Richard Branson and American life coach Tony Robbins.
But Mr Lane has told the Australian the failure of the events business will not affect Forbes Australia as it prepares to hold its Women’s Summit on Wednesday, headlined by Global Express chief executive Christine Holgate.
Forbes Australia’s summits are being organised under the magazine’s auspices and not the events business Mr Lane formerly ran.
“There is no correlation to the Forbes Women’s Summit or Forbes Australia. It is categorically wrong to suggest otherwise,” Mr Lane said.
“There is no correlation at all and there is no impact on Forbes Australia. Forbes Australia has different shareholders and directors.”
However, corporate records show Forbes Australia and Success Resources Australia share the same parent company, Success Global Media.
The rescue plan proposed for Success Resources Australia was also signed off by Mr Lane’s former chair: the Singaporean businessman Richard Tan Poh Choon, who owned much of the formerly ASX-listed Success Global Media.
The events business collapsed in January, owing $4.3m in loans to a number of companies, including $2.5m to related parties.
Administrators concluded the events business owed a further $5.6m to creditors and had only $500,000 in cash.
The rescue plan, put forward by Success Resources Australia’s Singaporean directors, would hand the unsecured creditors of the event business 16c in the dollar, while secured creditors get their full entitlement.
The $600,003 distribution will be paid over the next six to 12 months.
Mr Lane said while he was not involved with the firm anymore “it was heavily impacted by Covid”.
“The company had its challenges, but it is trading and it did not fail. To suggest otherwise is not correct,” Mr Lane said.
Corporate filings show the Success Resources Australia events business ran up a $1.4m loss in the 2022 financial year and a further $662,766 loss in the eight months to February this year.
This comes after losing $1.28m in the 2021 financial year.
Jirsch Sutherland administrators Andrew Spring and Trent Devine noted the firm traded at a significant loss during the periods investigated, “consistent with the background provided by management”.
Liquidators noted in their report there were signs the company may have traded while insolvent, noting it had overdue taxes and outstanding statutory lodgements and low liquidity.
“Further investigations are required to be conducted by a liquidator to determine a date when the company potentially started to trade while insolvent,” administrators wrote.
Mr Lane left Success Resources Australia as a director in October 2021 shortly before opening Forbes Australia.
He has repeatedly spruiked Forbes Australia’s events plans under his proposal to bring the leadership and luxury magazine to Australia, announcing the publishing play in May last year.
Forbes Australia offers its subscribers exclusive access to VIP events and experiences for $25 per month.
In interviews with media ahead of Forbes’ Australia’s launch, Mr Lane talked of the company’s “very strong event platform”.
Mr Lane and Forbes Australia editor-in-chief Sarah O’Carroll spent up, poaching journalists around the country and fitting out a bureau in Sydney’s Pyrmont.
The Forbes Australia Women’s Summit, sponsored by NAB’s private wealth business and JBWere, is aiming to snag a slice of the wealthy women market with tickets starting at $349.
Mr Lane said Forbes Australia was a “successful concern”.
“Forbes Australia launched six months ago and is exceeding expectations on all levels. We have published three magazines so far, including the inaugural 50 Richest issue,” he said,
“We have successful (sic) launched our digital platform and membership platforms. We couldn’t be more excited with what our team had achieved so far and what lies ahead.”
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