$13m owed: Ferrari-driving businessman declares bankruptcy
A former Ferrari-driving businessman has declared bankruptcy after his four companies collapsed within eight months owing about 200 creditors $13 million.
Sunshine Coast businessman Gordon Smith, who last year promoted his investment company as being "solid as a rock", is unable to pay back the creditors of his four property development and wealth businesses, liquidators' reports note.
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 $13.05 million.
Now, the liquidator combing through the wreckage of the Omnia Property and NRG Concepts businesses alleges Mr Smith 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 effort to recover cash would be unviable.
"Based on our preliminary investigations it would appear that the 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 inter-company 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".
The Papua New Guinean-born businessman "specialised" in providing people with advice to grow their "personal, financial and emotional" wealth through his companies.
He could not be contacted for comment.