The Courier-Mail

High-flyer says he is bank­rupt

- HAY­DEN JOHN­SON Business · Bankruptcies · Business Law · Gordon Smith · Grant Thornton International

FOR­MER Fer­rari-driv­ing busi­ness­man Gor­don Smith has de­clared bank­ruptcy af­ter his four com­pa­nies col­lapsed within eight months ow­ing about 200 cred­i­tors $13m.

Mr Smith, who last year pro­moted his Sun­shine Coast­based in­vest­ment com­pany as be­ing “solid as a rock”, has left hun­dreds of cred­i­tors fol­low­ing the col­lapse of four prop­erty de­vel­op­ment and wealth busi­nesses, liq­uida­tors’ re­ports note. hey Om­nia Life­style Group Pty Ltd, Om­nia Group Pty Ltd, NRG Con­cepts Pty Ltd and Om­nia Prop­erty Pty Ltd col­lapsed be­tween May 30, 2019 and Fe­bru­ary 21 this year.

The four com­pa­nies col­lec­tively owe 197 cred­i­tors

$13.05m. Now, the liq­uida­tor comb­ing through the wreck­age of the Om­nia Prop­erty and NRG Con­cepts busi­nesses al­leges Mr Smith (pic­tured) may have breached the Cor­po­ra­tions Act by trad­ing while in­sol­vent since as early as Jan­uary and Fe­bru­ary 2019, re­spec­tively.

Liq­uida­tor John McIn­er­ney of Grant Thorn­ton, who was ap­pointed to wind-up three of the four com­pa­nies, re­vealed in a report Mr Smith had now de­clared bank­ruptcy and any eff ef­fort to reco cover cash wo would be un un­vi­able. “B “Based on ou our pre­lim­i­nary l im in­ves­ti­gain tions tio it would wo ap­pear that th t th the di di­rec­tor would not have suf­fi­cient re­sources to pay any judg­ment ob­tained against him,” Mr McIn­er­ney noted.

“We do not as­sess any merit in com­menc­ing re­cov­ery action against the di­rec­tor.”

Mr McIn­er­ney’s in­ves­ti­ga­tions found high cash use, poor fi­nan­cial con­trol and poor strate­gic man­age­ment con­trib­uted to the com­pany col­lapses.

Mr McIn­er­ney noted many of their larger debts were in­ter­com­pany loans, with Mr Smith mov­ing money be­tween each.

The liq­uida­tor said with a ma­jor­ity of the en­ti­ties in liq­ui­da­tion, there is “un­likely to be any com­mer­cial ben­e­fit in pur­su­ing this po­ten­tial claim” of un­fair loans. Mr Smith, who op­er­ated the com­pa­nies from a Gold Coast man­sion, boasted on the web­site of his fi­nan­cial ad­vi­sory group Om­nia of hav­ing “a vi­sion to cre­ate a 1000 year legacy”. He could not be con­tacted for com­ment.

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