06/10/2009 - 14:06

Casualties emerge at Great Southern

06/10/2009 - 14:06

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Investors in several Great Southern schemes face having their agribusiness assets seized by third party land-owners, after receivers were unable to secure financing to keep paying the leases.

Investors in several Great Southern schemes face having their agribusiness assets seized by third party land-owners, after receivers were unable to secure financing to keep paying the leases.

The affected schemes include a range of assets such as almonds and timber.

Investors have effectively lost all control over their assets located on the Tiwi Islands in the Northern Territory after a breach of lease arrangements.

"As a result of the termination of the head leases, investors with woodlots located on the Tiwi Islands will no longer have a licence or sub-lease in relation to their woodlot," receiver McGrathNicol said.

"There is a high risk that the exercise of this right by the Tiwi Land Council will mean the loss of the scheme timber on that land and any future harvest proceeds for investors."

One-third of investors in Great Southern Plantations 2005 timber schemes - representing more than 3000 investors - face the same situation as their assets are located on third-party-owned property.

About 1500 investors in the equivalent 2006 scheme are also understood to be affected

There has been a breach of lease at all Great Southern almond schemes.

McGrathNicol has secured emergency short-term funding for several other schemes.

 

 

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