17/09/2009 - 10:35

Martin ups ante on Great Southern

17/09/2009 - 10:35

Bookmark

Upgrade your subscription to use this feature.

Perth businessman Gordon Martin has challenged potential rivals for Great Southern assets to put forward detailed proposals as funding for the collapsed company's assets is about to run out.

Martin ups ante on Great Southern

Perth businessman Gordon Martin has challenged potential rivals for Great Southern assets to put forward detailed proposals as funding for the collapsed company's assets is about to run out.

The call comes a day after the Black Tree Proprietary, which includes the Bunning family and Azure Capital's John Poynton, launched a proposal for all 11 timber plantations managed by the failed agribusiness provider.

The proposal is up against Mr Martin's own offer, submitted through Pulpwood Plantations, which is headed by former Great Southern deputy chief executive Phillip Butlin.

Mr Martin's submission is for six of the timber plantations, however through a conditional deal with US investment firm Och-Ziff Capital Management Group, the offer could be expanded to all 11 plantations.

Today, Mr Martin stressed that Pulpwood's offer is the only offer in the market and accused other potential bidders of wasting time, with receiver McGrath Nicol to stop funding Great Southern assets at the end of this month.

"Growers need all of the facts on their alternatives to be made public now," he said.

"We are concerned that growers will be delayed in their consideration by the hope of offers that have yet to confirm any detail including their source of funding."

In an email to WA Business News late today, Black Tree said it would not be pushed into submitting a rushed proposal.

"The Great Southern receiver has implemented a formal offer process to maximise returns to growers," the company said.

"Black Tree believes Great Southern growers own a valuable asset so will work within the agreed offer process and won't be drawn into attempts to degenerate this into a fire sale of assets."

Mr Martin has previously said Pulpwood has received overwhelming support from growers for its proposal.

Pulpwood is in the process of calling a meeting of growers to consider replacing Great Southern Managers Australia with a new independent entity, Primary Securities.

 

 

 

The announcement is below:

 

Gordon Martin, the Perth industrialist heading up Pulpwood Plantations Pty Ltd (PPL) offer to partner with growers of six Great Southern schemes has called for companies speculating on alternative offers to put them forward.

"Great Southern's receiver will stop funding on September 30 leaving growers with a narrow window of time in which to decide how to protect their investment. Growers need all of the facts on their alternatives to be made public now.

"We are concerned that growers will be delayed in their consideration by the hope of offers that have yet to confirm any detail including their source of funding. The PPL offer is the only offer in the market and it has been public for weeks."

Martin was responding to the announcement by a potential promoter who was said to be working on a scheme to restructure Great Southern providing a solution for banks, other creditors and growers.

The PPL offer is for growers alone and asks them to vote to replace the responsible entity from Great Southern Managers Australia to Primary Securities and thus allow PPL to enter an arrangement with growers to provide all of the working capital and share the net proceeds of their woodlots.

The PPL Chairman was also concerned about some of the statements being made. "There has been a suggestion that PPL will earn $100 million in fees. This is wildly inaccurate. Our offer is focused only on growers and a sharing of the proceeds, to truly align our interests with theirs. We have been transparent with growers. Claims with no substance are not helpful when growers need detailed facts and soon."

PPL have reported that they have received overwhelming support from growers and are in the process of calling a meeting of growers to consider replacing Great Southern Managers Australia Limited be with by a new, independent Responsible Entity, Primary Securities Ltd

STANDING BY BUSINESS. TRUSTED BY BUSINESS.

Subscription Options