It was September 2023 and Simon Raftery was desperate for money. Raftery had helped raise almost $200 million from private lenders and investors to re-establish the long-closed Wilkie Creek coal mine in south-west Queensland. But now, less than six months since the mine had restarted, he was on the phone chasing another $1 million.

Raftery, a smooth-talking, opportunistic young man, was used to wrangling money. He ran an advisory and investment firm, called Remagen, which operated in the booming but opaque private credit industry. It raised money from rich investors and then lent it at eye-watering interest rates to distressed small and medium-sized companies that couldn’t get bank loans.

For some of the past decade, Remagen was very successful, managing hundreds of millions in investor funds. Raftery was doing so well he even bought himself a luxury Sydney waterfront home, with a private jetty, for $7.6 million. But more recently, Remagen had run into trouble after Raftery overextended himself. He had expanded Remagen into bigger and bigger loans and also tricky private equity deals, some of which ended badly.

Two national food companies of which Raftery was a director, Aussie Frozen Fruit and the In2Food group, which had supplied major supermarkets and cruise ships, had failed, owing about $80 million. Tens of millions of dollars of Remagen investor funds, and Raftery’s own money, were torched in those companies and also in other poorly performing deals in the mining industry.

Raftery and Remagen had managed money for global institutions and ultra-high-net-worth families from Australia and Asia. Among them were well-known names such as BlackRock, former Macquarie chief executive Tony Berg, and also Irene Lee, who sits on the board of e-commerce giant Alibaba and hails from one of Hong Kong’s wealthiest families. However, after the failure of those two food companies, a number of Remagen’s wealthy investors cut Raftery off.

To make matters worse, Raftery’s work problems had also spilled over into his personal life. A repossession order had been issued on his fancy waterfront home in Sydney’s south. He’d only lived there for 16 months with his family, when the order was made in July 2022. But more than a year later, as he struggled to scrape together the $1 million needed for Wilkie Creek, his house still hadn’t been repossessed, which was fortunate for Raftery. Still, he was operating on borrowed time.

Wilkie Creek was supposed to be Raftery’s chance to rebuild his and Remagen’s fortunes. However, like many of his more recent deals, it wasn’t turning out so well. The mining group was only three months away from collapsing. It wouldn’t be the last mining company failure Raftery would be caught up in. Nor would it be the last of his woes.

Raftery and Remagen were the subject of multiple complaints and reports to the corporate watchdog, the Australian Securities and Investments Commission (ASIC), and also federal politicians. He would also become entangled in a handful of court cases that stretched from Perth to Sydney.

The Wilkie Creek coal mine sits about 250 kilometres north-west of Brisbane, near the rural town of Dalby. It ceased operating at the end of 2013 after its then owner, the US coal giant Peabody Energy, failed to find a buyer willing to pay $500 million for it.

It took multiple attempts, many years and a heavily discounted price before Peabody finally sold the mine in 2021 to a private consortium. It would take another two years before the mine was brought back to life in April 2023, and only after Raftery and Ben Madsen of Archibald Capital, and their firms, had spent the past year organising private loans to restart it which would tally around $US125 million ($186 million).

Madsen, like Raftery, operated a private credit firm. However, Raftery and Madsen’s partnership wouldn’t last. Six months after the mine restarted, Raftery and Madsen fell out. Madsen quit a company where he was a director alongside Raftery. It was around the time that Raftery was on the hunt for that $1 million loan, which was needed for the mining group’s working capital.

Raftery was running out of colleagues and investors willing to help him on that project. However, he finally had some luck with a trucking group in Western Australia called Truckworld Rental. Raftery spoke to its director, Mark Cates, and told him he needed $1 million “immediately”, court documents have alleged.

It wasn’t clear how Raftery knew Cates, but during that conversation both men discussed whether Raftery could instead borrow the money from his father, according to claims in a case that was later brought before the Western Australia Supreme Court.

Martin Raftery, Simon’s father, is a well-known sports physician who has worked for rugby league club St George Illawarra and also for Australian Rugby Union. The senior Raftery had been an investor through a company called Doc and Sons in some of Remagen’s deals, including the failed Aussie Frozen Fruit group.

Raftery told Cates he didn’t want to ask his father for the money, according to court documents. Instead, the men came to an agreement: Raftery would get the $1 million, but the loan was to be repaid within five days, the court documents alleged. Raftery had personally guaranteed the loan. The money was transferred to a bank account of the mine.

Raftery is then said to have sent the following email to Cates confirming the repayment terms.

“Mark
As discussed, I’m personally liable for this. Funds to be returned Tuesday
19 September
Thanks
Simon”

It was the last time the trucking group saw its $1 million.

In late December, New Wilkie Energy, the company that ran Wilkie Creek, collapsed, buckling under enormous debt.

In April this year, Truckworld Rental sued Raftery in the WA Supreme Court for “misleading or deceptive conduct”, alleging Raftery failed to repay the $1 million loan he had guaranteed.

Raftery lost that case in early July and was ordered to pay Truckworld’s costs. Damages will be determined at a later hearing.

Raftery and Remagen were also caught up in another court case related to the failure of New Wilkie Energy.

In March this year – one month before Truckworld Rental launched its case – Raftery, Remagen and companies associated with him were sued in the NSW Federal Court for “misleading or deceptive conduct” to do with $40 million in loans provided for the mining group. Archibald’s Ben Madsen and firms associated with him were also sued for “misleading or deceptive conduct”.

Raftery had been an adviser to a wealthy NSW family who had bet big on New Wilkie Energy. The Hallinan family ran Hi-Quality, an east coast waste management and logistics company. The Hallinans and Hi-Quality had allegedly put $100 million into the mining group, through $40 million in short-term loans and later $60 million in shares.

The Hallinans and Hi-Quality had been demanding repayment of some of those short-term loans, and had lost patience with Raftery and Madsen and their companies that had helped organise the loans.

In court documents, the Hallinans and Hi-Quality said they had provided loans to the mining group, using Remagen and other investment vehicles involving Madsen and Raftery.

Some of the loans, made between October 2022 and May 2023, charged an annual interest rate of 24 per cent, and were made in tranches, according to their case. In some instances, it was claimed that those short-term loans were supposed to be repaid within four months.

According to the Hallinans and Hi-Quality, they were repaid only $1.7 million. They are suing both men and their associated entities for loss and damages and the repayment of those loans. The Hallinans, Hi-Quality and their lawyer didn’t respond to requests for comment.

Raftery disputes the allegations. Ben Madsen disputes the allegations and did not respond to requests for comments. Both defences are due to be filed at a later date.

Raftery made the initial call to discuss putting New Wilkie Energy, the company that operated the mine, into voluntary administration, on December 12 last year, according to public documents. Raftery wasn’t a director of New Wilkie Energy. But he was a director of New Wilkie Energy Holdings, alongside members of the Hallinan family from December 12.

Voluntary administration happens when a company faces insolvency – meaning it can’t pay its debts. Once in administration, a company can be restructured, sold, or liquidated. In the six months to December 2023, New Wilkie Energy reported a net loss of $6.55 million, according to management accounts. New Wilkie Energy collapsed with debts of $304 million, most of which was owed to private lenders.

Raftery resigned as a director of New Wilkie Energy Holdings at the end of February. By the next month he would be embroiled in the court case with the Hallinans and Hi-Quality.

Wilkie Creek is not the first troubled mining venture in which Raftery has been involved. Other ventures include Indus Mining Pty Ltd, Habrok (Rydges) and Habrok (Battler Pit), which all have WA operations.

In April this year, a winding-up action on the grounds of insolvency was brought against Indus Mining Pty Ltd in WA’s Supreme Court.

Indus Mining was formed by Raftery’s firm Remagen between 2018 and 2019, after it raised $55 million from investors, including BlackRock, to acquire Watpac Civil and Mining.

The winding-up of Indus Mining was sought by a small business XPR Haulage, which claimed it was owed $3.2 million for bills that dated to October 2021. Raftery ceased to be a director of Indus Mining Pty Ltd in July 2021.

Raftery has claimed that XPR Haulage is not a creditor of Indus. Instead, he claimed an entity related to XPR Haulage, called Xpress Haulage, provided services to Indus between 2020 and 2021. Raftery disputes a debt with Xpress Haulage.

XPR Haulage provided copies of invoices that it issued to the court. At the top of each invoice is the name XPR Haulage, an email address for that company, and a bank account in that name.

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Indus Mining was supposed to file evidence in that case by July 9 but didn’t. The winding-up matter is due to be heard again in August.

Raftery provided context on the case but said he had nothing to do with these court proceedings. His firm Remagen remains a lender and shareholder in Indus.

Two other mining companies of which Raftery was a director are in liquidation.

The first is Habrok (Rydges), a site manager for gold and iron ore projects, of which Raftery has been a director since May 2020.

A liquidator, FTI Consulting, was appointed to Habrok (Rydges) in February this year, after a winding-up order was made by the WA Supreme Court.

According to a report done by FTI Consulting, Habrok (Rydges) ceased trading about February 2023 – one year before its liquidation. FTI’s report said Habrok (Rydges) had potentially traded while insolvent since mid-2021 or earlier.

FTI’s report also said Raftery “may have breached his director duties” and that it had “received limited books and records and information” from him. FTI has filed its preliminary investigation report with ASIC.

Raftery disputes that Habrok (Rydges) ever traded while insolvent or that he breached his director duties. He maintains that FTI was provided with the company’s books and records.

This masthead is not suggesting there has ever been a finding that Raftery breached his director duties, or that he misappropriated money.

The winding-up order against Habrok (Rydges) was sought by Wayne Pettingill, on behalf of Australian Surface Drilling, a small business that said it was owed nearly half a million dollars for work it had done.

Pettingill, Australian Surface Drilling’s general manager, spent almost six months chasing Raftery for payment, which was revealed in text messages tendered to the court. The money never arrived.

Pettingill has complained about Habrok (Rydges) and Raftery to ASIC, and also federal politicians including the office of Labor senator Glenn Sterle and opposition MP Rick Wilson.

Sterle’s office contacted ASIC raising Pettingill’s concerns. It received a reply from ASIC’s acting senior executive leader of misconduct and breach reporting, Peter Witham.

“ASIC is currently conducting further inquiries to determine whether to take administrative action to ban Mr Raftery and others from managing corporations,” Witham wrote.

ASIC has the power to ban a director for between five and 20 years if they’ve been involved with two or more companies that have gone into liquidation in the past seven years. It must prove allegations that the companies were mismanaged; that creditors received less than 50¢ in the dollar; and/or that the federal government paid employee entitlements in the failed companies.

ASIC declined to comment.

Last November, Independent federal MP Bob Katter met then-ASIC boss Warren Day and Financial Services Minister Stephen Jones at Parliament House in Canberra, where Raftery and the collapse of Aussie Frozen Fruit was discussed. A number of small businesses, which were Aussie Frozen Fruit creditors, had complained to Katter.

In April this year, WA’s Supreme Court also appointed a liquidator to Habrok (Battler Pit). Raftery has been a director of that company since April 2019, according to ASIC records.

Habrok (Battler Pit) was put into liquidation after its winding-up was sought by Barto Gold Mining, which said it was owed $3.4 million.

Habrok (Battler Pit) owned two mining tenements, according to RSM, the liquidator.

RSM’s report said that Raftery had “provided limited financial books and records” hindering its investigation, and that Habrok (Battler Pit) might not have kept records for a minimum of seven years as required by law.

In its report filed with ASIC, the liquidator said that Raftery advised that Habrok (Battler Pit) no longer owned its two mining tenements, which were instead transferred to another company in an agreement dated November 1, 2023.

However, RSM said the relevant forms to transfer those tenements were not submitted to WA’s Department of Energy, Mines, Industry Regulation and Safety, until after RSM’s appointment in April this year.

RSM said the department had delayed that transfer until the liquidation investigation was complete.

Raftery told RSM he disputed Barto Gold Mining’s $3.4 million debt, and said there was a disagreement between the two companies over gold processing charges.

Raftery claims that Remagen is also owed $3.5 million by Habrok (Battler Pit). But RSM’s report said Raftery had not provided proof to support that claim.

Raftery told RSM that Habrok (Battler Pit) ceased operating in 2020. “I note that the limited financials provided to me by the director indicate that the company incurred significant mining costs in the financial years ending 30 June 2020 and 30 June 2021,” the report said.

It also added: “Initial investigations have identified potential liquidator claims against the director for compensation for insolvent trading and breach of director’s duties.”

Raftery informed this masthead through a lawyer that he was not aware of any proceedings concerning Habrok (Battler Pit).

The potential insolvent trading claims and breach of director duties emerging from preliminary investigations into Habrok (Rydges) and Habrok (Battler Pit) added to the allegations against Raftery of potential insolvent trading and breach of director’s duties at Aussie Frozen Fruit and the In2Food group.

Raftery maintains that none of those claims are true and none have been substantiated.

Raftery had intended to merge Aussie Frozen Fruit and In2Food group.

Aussie Frozen Fruit had once supplied frozen fruit, such as strawberries, blueberries and mangoes, to Woolworths and Coles, while In2Food prepared produce for catering, retail and corporate customers, such as cruise ships.

The In2Food group went into liquidation in April 2023, and Aussie Frozen Fruit in May of that year, just as Wilkie Creek’s operations were ramping up.

KordaMentha, the liquidator of Aussie Frozen Fruit, detailed in its report in August 2023, that according to its preliminary investigation it was likely Aussie Frozen Fruit had been insolvent since October 2021.

Its report has been filed with ASIC. KordaMentha is also managing the administration of New Wilkie Energy.

HLB Mann Judd, the liquidator of the In2Food group, issued its report in July 2023, and found that according to its preliminary investigations, that collection of companies was potentially insolvent from June 2022. Its report has been filed with ASIC.

Raftery said that Aussie Frozen Fruit and In2Food had been in liquidation for more than a year without any claims being pursued.

Raftery has previously argued through his lawyer that the liquidators’ reports for Aussie Frozen Fruit and In2Food contained tentative remarks about possible breaches of directors’ duties, but that “no breaches have been substantiated and any suggestion they have been or are likely to be substantiated is completely false”.

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In June, HLB Mann Judd secured NSW Federal Court approval to enter into a funding agreement with the federal government’s Department of Employment and Workplace Relations, which will allow it to pursue a public examination into In2Food group’s failure. The government department is a creditor of In2Food group because it operates the Fair Entitlements Guarantee, which is a payment scheme that helps employees who have lost their job when their employing company enters liquidation.

Liquidators’ investigations into insolvent companies are often limited by a lack of funds, which makes it uncommercial to pursue further inquiries.

Raftery’s house became tied up with In2Food, when he used his luxury home as collateral to help secure a $3.5 million loan for that group.

The $3.5 million loan was provided to In2Food by GI 320, a company associated with Justin Epstein, who also runs private credit firm Gemi Investments.

The loan agreement between GI 320 and In2Food was struck in December 2021.

A little over three months later, In2Food defaulted on repayments for that $3.5 million loan. GI 320 brought proceedings in the NSW Supreme Court to take possession of Raftery’s house, and a judgment was given in July 2022.

Earlier this year, Raftery’s house was repossessed. An attempt to sell it in March was aborted. It finally sold in May for a fraction over the $7.6 million that Raftery originally paid for it in 2021. The month his house sold, Raftery turned 42.

In recent months, Raftery has been spotted out socialising at drinking venues in southern Sydney, where he lives, and flying business class between Perth and Sydney, which he said was done after an upgrade on points. Those activities have infuriated former investors and many of the hundreds of small businesses owed money from his failed companies. Raftery’s counter to this is that he and extended family members have also lost substantial sums of money in those business failures.

And what of Wilkie Creek mine? It remains on the market. How long before it finds a new owner remains one of many unanswered questions in a messy corporate tale.

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