Private lenders face heavy losses in Jon Adgemis’ $1.5BN pub collapse
Private lenders are staring down significant losses as the financial wreckage of Jon Adgemis’ hospitality empire unfolds, with creditors being offered just 0.17 of a cent in the dollar under a proposed rescue plan.
The deal is being considered as an alternative to bankruptcy, which would leave lenders with nothing, according to a report from Adgemis’ bankruptcy trustees. Creditors are set to vote on the plan next week.
The $1.5 billion figure cited in the report represents a worst-case scenario and includes personal guarantees tied to Adgemis’ 22-venue portfolio across Sydney and Melbourne. The final amount may be reduced if remaining assets are sold.
Adgemis has disclosed A$9 million in assets, including $545,000 worth of luxury vehicles, against debts that leave him $1.42 billion underwater.
Private credit providers — not mainstream banks — have funded much of Adgemis’ now-crumbling Public Hospitality Group. Reach Alternative Investments’ Jonathan Ng noted: “You should be marking it down immediately once you expect that, but in the wholesale market there are other things that go on.”
Lenders caught in the fallout include Geoff Lord’s Belgravia (owed A$28 million), Archibald Capital (nearly A$18 million), and Byblos (A$8.5 million). Deutsche Bank is one of the few institutional names involved, with over A$370 million across convertible notes, mezzanine debt and syndicated loans.
Gemi Investments, run by Justin Epstein, Michael Cooper and George Fleming, has nearly A$395 million in exposure, while Millbrook Group is seeking A$54.5 million and Mizunich claims A$126 million.
One pub still on the table is the Empire Hotel in Annandale, purchased for A$20 million in 2021. Hopes are pinned on a sale finalising soon.
To sweeten his rescue bid, Adgemis has disclosed a potential A$3 million contribution from a family member.
Jonathan Jackson, 23rd July 2025
