Tom Hedley’s stake in the listed hotel group that he founded is now in the hands of receivers.
Hedley, whose empire collapsed last week with debts of around $280 million, owned 58% of Hedley Leisure and Gaming Property Fund.
But receivers Justin Walsh and Richard Dennis from accounting firm Ernst & Young have taken control of the bulk of that stake (43.7% of the company’s shares).
The receivers are acting on behalf of secured creditor Suncorp, which is reportedly owed around $90 million.
The stake held by the receivers is worth around $17 million, but they face a tricky job trying to extract maximum value for the stake.
The stock has fallen from around $3.00 to just 0.24c since over the last two years, as investors became increasingly concerned about the company’s debt load of over $700 million.
Trying to offload such a big stake in one chunk could further depress the share prices. Instead, the receivers are likely to spend some time trying to find a buyer or buyers for parts of the stake.
But while it will take many of Hedley creditors a long time to recoup their debts, it appears the Cairns-based former plumber did his best to cushion the impact on local tradesmen.
According to a report in The Cairns Post, Hedley ensured all local subcontractors were paid before receivers moved in on the group last week.
James was the editor and publisher of SmartCompany and LeadingCompany for five years. He is now the Australian Financial Review‘s companies & markets editor, and a former BRW editor.
