The former controlling trustees of bankrupt deal maker Jon Adgemis could be stripped of their registrations after being issued with show cause notices by the Inspector General in Bankruptcy (IGB).
“The Australian Financial Security Authority (AFSA), led by the Inspector‑General in Bankruptcy, has issued show cause notices to a number of registered trustees regarding concerns about potential non-compliance with statutory and professional obligations.” AFSA.
WLP Restructuring partners Scott Pascoe and Ben Ho were appointed as controlling trustees by Adgemis in June last year as the ex-KPMG M&A partner prepared a compromise proposal offering creditors 0.15 cents in the dollar on $1.8 billion in debts.
Having learned of the miserly offering as Adgemis flaunted his higher roller lifestyle IGB Tim Beresford corresponded with the WLPR pair, expressing concerns about the adequacy of their investigations and their decision to recommend the proposal.
He was advised his concerns were “immaterial” and that the controlling trustees intended to proceed.
But on August 29 Pascoe and Ho adjourned a meeting convened to enable creditors to vote on Adgemis’ proposed Personal Insolvency Agreement (PIA) after a delegate of the IGB in attendance advised creditors of the concerns about the adequacy of the Controlling Trustees’ Report.
The IGB they heard wanted Pascoe and Ho to conduct further investigations and issue a supplementary report.
As it turned out, Adgemis was bankrupted by creditor’s petition and Pascoe and Ho were spared the need to conduct further work. But as it’s transpired that that was the least of their concerns.
When contacted yesterday to ask about the show cause notices, news of which was provided to iNO by confidential sources, Pascoe would say only that he had “no comment” to make.
In a statement AFSA’s media unit said: “The Australian Financial Security Authority (AFSA), led by the Inspector‑General in Bankruptcy, has issued show cause notices to a number of registered trustees regarding concerns about potential non-compliance with statutory and professional obligations.
“Consistent with its regulatory priorities, the Inspector‑General continues to take action where potential harms to individuals, creditors, or the integrity of the personal insolvency system are identified. Further information may be provided at the appropriate time.“
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