Progress in Adgemis hospitality empire administration

The Federal Court of Australia has approved an application by administrators Ryan Rabbitt, Jennifer Nettleton and Scott Langdon of KordaMentha to extend the convening period for JAGA HoldCo Pty Ltd and 18 related entities to 31 July 2026, allowing more time to complete construction and sale processes across the group’s five Sydney hospitality venues.

The JAGA Group, founded by Sydney hospitality entrepreneur Jon Adgemis, owns the South Bondi Hotel, Claridge House, Exchange Hotel, Empire Hotel, and Hotel Diplomat. The group fell into distress after defaulting under a senior facility agreement, leading to the appointment of receivers Jonathan Henry, Damien Pasfield, and Katherine Sozou of McGrathNicol on 30 September 2025. The companies collectively owe over $403 million to secured creditors.

Justice Jackman accepted that the extension was justified given the scale and complexity of the group’s operations. The administrators and receivers argued that the additional time would allow completion of construction at Claridge House and the Exchange Hotel and enable orderly realisation of the group’s assets—including the Empire Hotel and Hotel Diplomat, the only venues still trading—maximising returns for creditors.

Evidence before the Court indicated that construction at the two venues was expected to conclude between February and April 2026, with sales campaigns to follow. Justice Jackman described the proposed timeline as “commercially sensible,” noting that any prejudice to stakeholders was “minimal and outweighed by the benefit of extension.”

Both the administrators and receivers considered that liquidation without the extension would likely result in materially lower recoveries. The Court gave their views substantial weight, emphasising that adequate time for due diligence, extended settlement periods, and the potential for sales through deeds of company arrangement could lead to better outcomes.

Read the decision here. Zoë Hillman of Alinea Chambers (instructed by Gilbert + Tobin) represented the administrators.