Australia’s bankruptcy regulator has intervened in the administration of the estate of Mr Jon Angelo George Adgemis, citing concerns about the conduct of his controlling trustees and the adequacy of information provided to creditors.
The Australian Financial Security Authority (AFSA) and the Inspector-General in Bankruptcy said the trustees had not sufficiently investigated the debtor’s affairs or supplied a detailed enough report, with a growing number of creditors also raising issues.
A delegate of the Inspector-General used statutory powers to step in at a creditors’ meeting, directing aspects of its conduct. The delegate addressed attendees to outline the regulator’s concerns, ensure an adjournment was considered, and set out possible consequences for any abuse of the personal insolvency regime.
The meeting was adjourned to allow the trustees to carry out further inquiries to the expected standard and to give creditors time to make their own checks. AFSA said the pause should leave creditors better prepared for any future meeting, including the chance to put questions to Mr Adgemis or the trustees.
The Inspector-General also flagged concerns about whether a number of parties have fully complied with the Bankruptcy Act, while noting no view has yet been formed as to whether any specific provisions have been breached by any particular party.
AFSA and the Inspector-General said they remain focused on protecting the integrity of the personal insolvency system and delivering fair outcomes for all participants.
Under Australia’s personal insolvency framework, a controlling trustee is appointed to take control of a debtor’s property, investigate their affairs and report to creditors before a vote on any proposal, such as a personal insolvency agreement. The Inspector-General has powers to supervise practitioners and intervene where necessary to uphold standards.
