Hedley fortune down the drain
TOM Hedley's rags to riches ride has ended back in rags - cleaned out after being worth $700 million just two years ago.
But local tradesmen appear to have been spared his fall.
The Cairns Post has learned that the former developer and pub baron ensured almost all local sub-contractors were paid out before receivers last week closed in on nine companies he was involved in.
Receiver Robert Hutson, of KordaMentha, representing the ANZ Bank, said an initial assessment of the Hedley Group of companies shows that only a "limited" number of local sub contractors may be affected.
But sources close to Mr Hedley say the man himself virtually has nothing left.
"There is no nest egg, there is nothing to fall back on," the source said, adding that even Mr Hedley’s original plumbing company was taken in a management buy-out.
Mr Hedley was known for demanding to be invoiced weekly after having been the victim of collapsing companies when he was a sub contractor.
It is understood he was desperate not to have that happen to those he employed and so negotiated a deal with creditors.
Mr Hedley now faces a five-year exclusion from holding a Building Services Authority Contractor Licence or being a director, secretary or influential person for a BSA-licensed company unless he can show that he took all reasonable steps to avoid receivership.
Mr Hedley also has lost his 56 per cent share holding in the stock exchange listed Hedley Leisure and Gaming Group.
Late yesterday, solicitors for Ernst and Young, who are representing Suncorp, put in a claim to the Australian Stock Exchange for nearly 69 million shares in the company.
"Our intention is to sell the holding," Ernst and Young’s Justin Walsh said.
But the share price has plummeted from more than $3 just a few years ago down to 28c yesterday after being rocked by the global financial crisis and fears that the properties in the portfolio were over valued.
Hedley companies facing being wound up include Tom Hedley Pty Ltd, TW Hedley (Investments) Pty Ltd, Hedley Developments Pty Ltd, Hedleys Pty Ltd, Hedley Constructions Pty Ltd, Hedz Pty Ltd, Arumpin Pty Ltd, TWH (QLD) Pty Ltd and Hedley Commercial Property Services Pty Ltd.
While bank appointed receivers KordaMentha and Ernst and Young wade through the details, Todd Kelly, of Cairns based Foremans Business Advisors, appointed as an administrator of Hedz Liquor Group, said it could take several months before any decision on the survival of that company could be made.
Mr Walsh said he could not say which of the companies might survive.
The Hedley story
- Hedley fallout hits racing
- Tradies toast troubled tycoon
- Hedley in receivership
- Hedley quits as director
- Hedley quits as CEO
- Hedley fortune takes $430m hit
- Hedley stops trade
- Hedley trade halt
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