A major lender to Public Hospitality Group, the hotel empire of former KPMG deal maker Jon Adgemis, has signalled it will call in receivers to five Sydney pubs.
Already a subscriber?A major lender to Public Hospitality Group, the hotel empire put together by former KPMG deal maker Jon Adgemis, has signalled it will call in receivers for five Sydney pubs after ignoring an offer to have its debt bought out.
Public Hospitality venues Oxford House, The Exchange in Darlinghurst, The Norfolk, The Strand Hotel and Camelia Grove Hotel could have receivers appointed on Monday by New York-based private credit provider Muzinich & Co, sources with knowledge of the situation toldPublic Hospitality Group’s Jon Adgemis at the Australian Open this year.It is the latest curveball in the Public Hospitality saga. After months of negotiations, the group secured a $400 million refinancing deal in July.
Instead, Muzinich & Co has indicated its plans to appoint receivers and an administrator over the company which operates the five pubs, the sources said.On Thursday, Sydney-based credit investor Archibald Capital, another lender, put forward a proposal to Muzinich & Co that it believes will leave creditors more than $50 million better off than if the five pubs were tipped into the hands of receivers and sold.Public Hospitality owns 17 pubs and hotels.
Muzinich & Co holds more than $100 million of Public Hospitality’s debt from the July refinance. Sources said Muzinich & Co was unhappy with a proposal by Deutsche Bank to put a further $6 million into the business. Muzinich & Co opted to take over all of a loan it previously shared with Deutsche Bank.Muzinich & Co recently made an offer to other debt holders which was not well received, sources said.
Archibald Capital’s offer is still on the table, and it is hoping to prevent the pubs being put into receivership, sources said. Archibald Capital has secured funding with a major property private equity fund which would support its deal, sources said.covers insolvency, courts, regulation, financial crime, cybercrime and corporate wrongdoing. A Walkley Award winner, Max's journalism has also received awards from the National Press Club of Australia, the Kennedy Awards and Citibank.
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