Embattled real estate company McGrath Limited has found itself in even more trouble, following rumours that founder and incoming chairman John McGrath has a huge gambling debt.
McGrath ended Friday’s session with a share price of $0.46 cents.
The price had already taken a tumble upon news that the McGrath Board had quit after the company downgraded its six-month earnings.
Mr McGrath is currently the only remaining Board member and is expected to step in as executive chairman.
Over the weekend, Fairfax revealed that Mr McGrath has a $16 million gambling debt to William Hill Australia. Fairfax alledges that Mr McGrath racked up the debt through bets on horse racing.
On Tuesday, McGrath’s share price dropped to $0.43 cents. It is currently trading at around $0.44 cents.
Multiple sources told Fairfax that Mr McGrath loses about $10 million a year on the horses.
The Sydney Morning Herald reports that Mr McGrath sent a memo to his staff calling the Fairfax story “rubbish.”
“This rubbish will not distract me and should not distract us… I have developed the belief that everything in life serves us for a purpose and even things such as this have a place in life’s journey – if only to build character and strengthen resolve,” the leaked memo said.
Source: The Sydney Morning Herald