Former Billabong boss leaves trail of gambling debts

[dave nz]

THE lawyer-turned-surfwear-and-IT-entrepreneur Matthew Perrin racked up $1.7 million in gambling debts last year before his financial world collapsed around him this week.

The debts of the former high-flying Billabong chief executive include $800,000 to the Centrebet boss, Con Kafataris, $300,000 to Flemington bookie Frank Hudson and $160,000 to one of Victoria's biggest Bookmaker.com/?cmpid=4437" target="_blank">Bookmakers, Alan Eskander.

Mr Perrin has left a $28.2 million trail of unpaid bills to 20 unsecured creditors, including Chinese finance company CITIC Capital, according to the statement of affairs that he signed when he filed for bankruptcy on Tuesday.

Four of these creditors, including CITIC, were multi-million-dollar loans secured against Mr Perrin's investment in a Chinese supermarket business, Global Mart, and other property development deals that have soured.

It is not the first time Mr Perrin's $150 million empire has been at risk.

In December 2007 property fund manager SAI Group forced him to appoint an administrator to the main Perrin-family vehicle, Christie Queensland, for three days before the dispute over a $30 million line of credit was settled.

A year later the financial pressure increased on Mr Perrin as he faced debts of up to $113 million secured against his ailing Chinese investment. He started selling assets.

First went some racehorses just before Christmas, and then he paid back $10 million loaned by motorbike racing champion Mick Doohan's parents.

He also repaid margin loans to Macquarie Bank and Adelaide Equity Finance. This year he has been living off his American Express card and two Mastercards, racking up $82,000 in two months.

Those further down the queue - the bookies, credit cards, banks and lawyers will have to wait.

Most bookies have written off Mr Perrin's debt after learning he was bankrupt. "It's case closed," said Sportsbet's chief executive, Matthew Tripp, who is owed $140,000. "We've shut the book on it."

Mr Perrin's gambling debts pale in comparison to the $13.5 million he owes the Commonwealth Bank. He borrowed the money last year against a $4.3 million Mermaid Beach unit.

He now says all he has left is a laptop worth $100, a $200 watch, $3000 worth of clothes and $30,000 cash. He also has Wesfarmers shares worth $1400. His $130,000 Mercedes coupe is sitting in a Gold Coast car dealership.

Despite making his fortune running a surfwear company, Mr Perrin preferred to be down at the racetrack.

Racing insiders said his gambling and horseracing activities increased after he made $66 million selling two-thirds of his Billabong stake in 2002.

"It wasn't like he was becoming increasingly desperate. He's just always been a big and regular active punter," one racing source said.