Ettamogah assets sales fall short

By InvestSMART · 12 Dec 2012

By InvestSMART ·
12 Dec 2012

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THE collapse of the Ettamogah Pub and entertainment empire has cost creditors at least $25 million, with liquidators so far recovering only a portion of what is owed by companies associated with Melbourne businessman Leigh O'Brien.

While the auction of an office building in Brighton last week has added $3.91 million to the kitty, the Ettamogah Pub in Albury, made famous by the work of artist Ken Maynard, is yet to be sold.

"Most things surrounding the Ettamogah seem to be in dispute," said David Ross of Hall Chadwick, one of three liquidators appointed by the Australian Securities and Investments Commission.

Fairfax Media understands that at least two entities could be staking claims to the signature Ettamogah Pub Mob, Li'l Larikkins and Wakkaville cartoons. "There's an ongoing dispute as to the ownership of the licensing for the animation," Mr Ross said.

ASIC filings show three companies controlled or owned by Mr O'Brien owed about $25 million when they were placed in liquidation more than 18 months ago.

Deloitte Touche Tohmatsu, appointed as liquidator of L & D O'Brien Holdings, has paid $3.3 million to creditor National Australia Bank. The company still owes more than $9.26 million. The group's Melbourne headquarters was sold last week for $3.914 million through Colliers International.

Mr O'Brien could not be reached for comment.

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Frequently Asked Questions about this Article…

What happened to the Ettamogah Pub empire and who was involved in its collapse?

The Ettamogah Pub and entertainment empire, associated with Melbourne businessman Leigh O'Brien, went into liquidation. Liquidators were appointed after the companies hit financial trouble, and creditors have so far recovered only a portion of what was owed.

How much have creditors lost in the Ettamogah Pub collapse?

According to the article, the collapse has cost creditors at least $25 million. ASIC filings show three companies controlled or owned by Leigh O'Brien owed about $25 million when they were placed in liquidation.

Which assets have been sold so far and how much did they fetch?

Liquidators sold a Melbourne property (an office building in Brighton described as the group's Melbourne headquarters) for about $3.914 million. An earlier auction added about $3.91 million to the funds available to creditors.

Has the signature Ettamogah Pub in Albury been sold?

No. The Ettamogah Pub in Albury, made famous by Ken Maynard's artwork, was reported as yet to be sold at the time of the article.

Who are the liquidators handling the Ettamogah group and what recoveries have been made?

Multiple liquidators were appointed by the Australian Securities and Investments Commission. David Ross of Hall Chadwick is one of three liquidators named, and Deloitte Touche Tohmatsu was appointed liquidator of L & D O'Brien Holdings. Deloitte has paid $3.3 million to creditor National Australia Bank.

Is there a dispute over the Ettamogah cartoons or licensing rights?

Yes. Fairfax Media reported that at least two entities could be staking claims to the Ettamogah Pub cartoons (including the Ettamogah Pub Mob, Li'l Larikkins and Wakkaville), and there is an ongoing dispute over ownership of the animation licensing.

How much does L & D O'Brien Holdings still owe after liquidator recoveries?

Deloitte, as liquidator of L & D O'Brien Holdings, paid $3.3 million to National Australia Bank, but the company still owed more than $9.26 million according to the article.

What should everyday investors or creditors watch for in this liquidation case?

Everyday investors and creditors should monitor liquidator updates and ASIC filings for progress on asset sales and claims. The article shows liquidators have recovered some funds from property sales, but disputes over licensing and outstanding debts mean recoveries can be partial and take time.