Jacobsens Deny Insolvent Trading Claims: Seeks New Administrator

Veteran concert promoter Kevin Jacobsen and his son Michael have strenuously denied allegations that Arena Management traded at the Sydney Entertainment Centre while it was insolvent and that they breached their duties as directors.

According to a report in the Sydney Morning Herald, the administrator of Arena Management, Randall Joubert, has uncovered 17 claims that could be made by a liquidator to claw back funds for creditors.

In his report before a creditors' meeting to be held next week, Joubert alleges the company may have been insolvent for as long as nine months before he was appointed as voluntary administrator on 31st July, a claim Kevin Jacobsen denies.

Joubert's report says Arena Management's debts are between $7.5 million and $11.5 million. Creditors include the Tax Office, owed about $1 million, the music promoter Michael Coppell, owed about $900,000, and the Entertainment Centre owner, the Harbour Foreshore Authority, owed about $1 million in rental arrears. Joubert alleges that there are "many more transactions involving large sums of money that are highly suspicious and require further investigation."

Joubert has recommended creditors vote to wind up the company when they meet next week.

However, a report in the Australian Financial Reviews indicates that Kevin Jacobsen is trying to install a new administrator.

Jacobsen senior is reported as claiming that the administrator missed the deadline for calling a creditor's meeting by two days and is apparently seeking to appoint a new administrator and then present a new deed of company arrangement in a move to take back control of the venue.

Image: Kevin Jacobsen.

14th August 2009 - JACOBSEN USED BOX OFFICE FUNDS TO PROP UP ARENA

13th August 2009 - SHOW GOES ON AT SYDNEY ENTERTAINMENT CENTRE

31st July 2009 - ARENA MANAGEMENT ENTERS RECEIVERSHIP

6th July 2009 - AEG OGDEN NOT PROCEEDING WITH SEC ACQUISITION