19/01/2018 - 15:45

Embattled Quintis facing $37m payment

19/01/2018 - 15:45

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Quintis faces more financial pressure after an investor exercised a put option to sell $37 million of plantations to the troubled sandalwood producer.

Embattled Quintis facing $37m payment

Quintis faces more financial pressure after an investor exercised a put option to sell $37 million of plantations back to the troubled sandalwood producer.

ASX-listed Quintis said today it has received notice that Asia Pacific Investments DAC, an affiliate of institutional investor Davidson Kempner, has exercised the option over 400 hectares of sandalwood plantations.

Quintis said it was considering its position.

It has previously disclosed that payment would be required by 2 February.

The put option was originally granted in 2014 and its exercise date has been repeatedly extended since May 2017.

Quintis shares have been suspended from trade since May, with the company seeking to negotiate a financial restructuring.

It is also facing a hostile board challenge involving former chief executive Frank Wilson.

The group of disgruntled shareholders, which claims to have around 400 shareholders on board, has requisitioned a general meeting and spokesperson John Allen said the group was frustrated that Quintis had not yet set a date for the meeting.

“If the current board believe they have successfully conducted their duties in the best interests of shareholders, surely they would urgently seek to hold an EGM to endorse their actions and give them a clear mandate to manage the company going forward," he said.

“Delaying an EGM only generates more uncertainty and fear.”

 

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