3 months ago
5
An embattled logistics heir has declared himself bankrupt after failing to pay $16.25 million to Westpac Bank, while a conga line of creditors pursue his former freight company that collapsed last year with debts of $116 million.
Melbourne businessman Gregory O’Shea claims to have no property or investment interests, does not own a car and has just $2 in cash, according to bankruptcy documents filed last month with the Australian Financial Security Authority (AFSA).
Bankrupt businessman Gregory O’Shea and wife Sarah Fyfe at the Kokomo Private Island Resort in Fiji in May.
The 37-year-old says he first experienced financial difficulties in December 2023, according to the AFSA documents, but still appears to have maintained his lavish lifestyle.
O’Shea celebrated his birthday in May at the Kokomo Private Island Resort in Fiji, and recently rented a luxury home in Brighton East for more than $3000 a week. O’Shea and wife Sarah Fyfe currently live in an upmarket apartment in South Yarra after selling their historic Toorak mansion for about $7 million in January.
The high-flying former director of Austrans Container Services, who took over the business from his father, declared himself bankrupt just days before his former partner, Rebecca Klodinsky, was due to take bankruptcy action against him in the Federal Court his failure to pay $500,000 as part of an out-of-court settlement over a financial dispute.
But the debt allegedly owed to Klodinsky was not included in the bankruptcy documents filed by O’Shea.
O’Shea’s former partner, Rebecca Klodinsky.
Klodinsky, a swimwear designer based on the Gold Coast, declined to comment when contacted by The Age.
O’Shea had also recently threatened to relaunch bankruptcy proceedings against former AFL player manager Ricky Nixon over an alleged $40,000 debt, despite a previous bankruptcy application being dismissed in the Federal Court in November 2024.
O’Shea, who did not respond to request for comment, owes more than $16 million to Westpac as part of a personal guarantee on his former business, Austrans, which was placed into liquidation in July last year.
Documents filed with the corporate regulator by liquidator Cor Cordis revealed it was investigating allegations that O’Shea had repeatedly breached his director duties and allowed the company to trade while insolvent.
O’Shea and Fyfe in Fiji.
A statutory report by Cor Cordis also confirmed the firm was examining claims that unfair preference payments and uncommercial transactions were made before Austrans’ sudden collapse.
“A number of stakeholders have raised concerns about the company’s conduct during the period prior to our appointment. The concerns raised appear to relate to the misappropriation of company and customer assets,” according to the report by Cor Cordis chief executive Daniel Juratowitch.
The long list of creditors includes 160 former employees who are owed more than $1.7 million in unpaid wages, superannuation and other entitlements.
Loading
In March, O’Shea told The Age that his former company had been sabotaged by a rival transport operator, which he accused of illegally suspending its services to derail Austrans and its holding company, Vermile Pty Ltd.
“I categorically deny all the allegations in the liquidator’s report. The report is vague, outdated and contains inaccuracies concerning the inflated debt of $116 million which has been substantially exaggerated,” O’Shea said in March.
At the time, he also vowed to relaunch bankruptcy action against Nixon, despite the previous bankruptcy application being dismissed in the Federal Court in November last year when O’Shea failed to attend court.
“I didn’t even know about the last bankruptcy hearing, which is why I have changed lawyers. If you want to talk about Ricky Nixon, I’ll send you all the evidence,” he said.
O’Shea did not provide any evidence to The Age and no documents have been filed with the Federal Court.
Start the day with a summary of the day’s most important and interesting stories, analysis and insights. Sign up for our Morning Edition newsletter.
Most Viewed in National
Loading
