Public Hospitality group has secured a $400 million refinancing deal with a consortium led by Deutsche Bank.

According to a report in the Australian Financial Review the group faced hundreds of millions in debt at high interest rates as financing costs rose, however the new deal will save the hotel empire from collapse.

The business is comprised of about 20 venues in Sydney and Melbourne. They include The Maybe Group (Maybe Sammy, Maybe Frank, Sammy Junior), Derrel’s at The Lady Hampshire in Camperdown, Busby’s at Oxford House in Paddington, Puttanesca at The Clifton Hotel in Kew in partnership with The Grossi Group and El Primo Sanchez in Paddington.

Public Hospitality Group is headed by Jon Adgemis (above).

The AFR reports: “The funding will be used to pay staff, suppliers, and creditors, they added. As part of the deal a new general manager with hospitality industry experience is expected to be appointed to manage the group’s venues. Mr Adgemis will stay on as executive chairman.

“The refinancing will not cover all the existing debt attached to his properties. A fund is expected to be established from the sales of properties to pay down more of the group’s debt. Properties likely to be sold include the Town Hall Hotel in Sydney’s Balmain.”

Properties likely to be sold include the Town Hall Hotel in Sydney’s Balmain.

The Australian has reported that approximately eight venues will be spun out of the group in a $70-80million equity fund controlled by Archibald Capital, which Adgemis will hold a stake in.

These venues are unlikely to continue under the Public brand. Additionally, a separate fund will also control Public’s former Melbourne pub assets.

Public Hospitality Group refutes ATO raid claim

Earlier this month, Public Hospitality Group refuted a report by the Australian Financial Review that it was raided by the Australian Taxation Office.

A Public spokesman said: “There was no ‘raid’ … this was an access visit by the ATO seeking documents that had been requested. Public missed the deadline to provide such documents.”

The spokesman told The Australian: “There was no search warrant executed, no AFP present, and no documents were allowed to be taken offsite. ATO staff were freely allowed into the property and were facilitated to complete their visit. However, Public did have the right to refuse entry, which they did not invoke.

“Public regrets missing the ATO deadline. Public continues to work constructively with the ATO and as previously stated, has entered into a payment plan.

“Public is finalising a debt deal that will seek to satisfy creditors and suppliers, as well as guarantee the jobs of some 400 Public employees,” the spokesman said.