03/09/2009 - 10:33

Kailis, Sumich eye Great Southern MIS

03/09/2009 - 10:33

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The two companies that manage Great Southern's olive groves in Western Australia have joined forces to develop proposals for the collapsed company's olive managed investment schemes.

Kailis, Sumich eye Great Southern MIS

The two companies that manage Great Southern's olive groves in Western Australia have joined forces to develop proposals for the collapsed company's olive managed investment schemes.

Kailis Organic Olive Groves and Sumich Olive Group of Companies have signed a heads of agreement to develop proposals for the administrators and receivers of Great Southern.

Both companies together manage more than 2,400 hectares of Great Southern's olive groves in WA.

"Both Kailis Organic Olive Groves and Sumich Olive Group have a long and proud history in the olive industry - from the farm gate to the plate - and we are confident that presenting an integrated solution will be in the best interests of all parties," the olive management group spokesperson, Mark Kailis, said.

"In particular, we are confident our proposals will have the potential to preserve value in the schemes for the investor growers.

"We are well established experts in this industry and we do not intend deviating from our core olive business, by having the growers alongside our operations our aim is to ensure all parties won't find themselves in this less than favourable position in two or three years time."

The group has already received in-principle support from Bendigo and Adelaide Bank for any proposals put forward to administrators or receivers.

The bank has previously said its exposure to borrowers in the Great Southern MIS is around $550 million, with an average of less than $70,000 for each borrower.

Last month, Coogee Chemicals chairman Gordon Martin put forward a $20 million proposal to receivers of Great Southern for the six collapsed timber schemes.

 

The announcement is below:

 

 

Key points

- Heads of Agreement signed between Kailis Organic Olive Groves and Sumich Olive Group of Companies

- The Companies are seeking sustainable solutions for olive MIS related to Great Southern Limited

- In principle support obtained from Bendigo and Adelaide Bank

Two of Australia's leading olive grower and processing groups have joined forces to develop proposals for the olive managed investment schemes (MIS) related to Great Southern Limited.

Kailis Organic Olive Groves and Sumich Olive Group of Companies have signed a heads of agreement to develop and present proposals to the administrators and receivers of Great Southern.

A spokesperson for the olive management group, Mark Kailis, said presenting sound commercially-based solutions would benefit the growers who had invested in the schemes.

The two Companies together are managers of all the Great Southern olive groves in Western Australia, totalling more than 2,400 hectares.

"Both Kailis Organic Olive Groves and Sumich Olive Group have a long and proud history in the olive industry - from the farm gate to the plate - and we are confident that presenting an integrated solution will be in the best interests of all parties," Mr Kailis said.

"In particular, we are confident our proposals will have the potential to preserve value in the schemes for the investor growers.

"We are well established experts in this industry and we do not intend deviating from our core olive business, by having the growers alongside our operations our aim is to ensure all parties won't find themselves in this less than favourable position in two or three years time," he said.

The olive management group has been in consultation with Bendigo and Adelaide Bank, which provided loans to some of the investor growers in the Great Southern olive MIS. Bendigo and Adelaide Bank have indicated their support for any proposal that is in the best interests of growers and the bank.

Kailis Organic Olive Groves and Sumich Olive Group expect to put forward a formal proposal to the administrators and receivers within the next fortnight.

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