Former rich list member Phil Adams declared bankrupt

Former rich list member Phil Adams, best known as the co-founder of collapsed financial services and property giant MFS, has filed for bankruptcy with reported debts of $120 million.

Adams, who was last listed on BRW’s Rich 200 list in 2007 with a fortune of $370 million (shared with MFS co-founder Michael King), has spent much of the past two years working in the property sector in Dubai, following the collapse of Gold Coast-based MFS.

Both King and Adams had margin loans of more than $200 million against their MFS shares, and have been pursued by various margin loan providers over the last few years.

According to a report in the Gold Coast Bulletin, the bankruptcy is being administered by Jason Bettles, of Worrells on the Gold Coast.

Bettles was unavailable for comment this morning but told the newspaper that he would produce a report to creditors at the end of November.

“We will undertake a review of his affairs to see what assets he has and review the records to see if there are any … assets that we might be able to recover,” he said.

Adams is now reported to be living in Sydney, having sold his stake in Dubai property company Agilis Global earlier this year.

In June, Adams appeared in the Supreme Court of NSW as part of MFS liquidator Kate Barnet’s examination of former MFS directors.

He said he was still living in Dubai at the time and was working for Agilis on a “fee for success” basis.

However, when asked what his personal worth was he told the court: “Negative tens of millions.”

In August 2009, Michael King entered a two-year personal insolvency agreement with his creditors, who are owed $130 million. King is required to make undisclosed payments to creditors during that period.