CREDITORS voted yesterday to wind up both Timbercorp and its subsidiary, Timbercorp Securities.
The meetings in Melbourne were run by administrators KordaMentha, whose principal, Mark Korda, officially became the companies’ liquidator last night.
Mr Korda had no difficulty persuading creditors of the once-listed Timbercorp to wind it up and a total of 40 companies in the group.
He had told them the company had debts of at least $980 million, including $661m owed to secured creditors, $14m to unsecured creditors, $5m in employee entitlements and $300m in other loans and debt.
“There’s no benefit, really, in deferring the liquidation,” he said.
The later meeting of Timbercorp Securities was much more fiery, mainly because there were 18,000 grower investors, of whom only about 14,000 provided the administrators with email addresses. Their connection with the collapsed companies is less immediate, which is a major reason for the growers’ uncertainty.
It stretched to almost three hours.
Many complained of being left in ignorance about what was happening to their investment, which was managed by Timbercorp Investments in its capacity as Responsible Entity (RE). Most are anxious to see that defunct company replaced as RE as soon as possible by another solvent RE, but to date only three schemes out of about 40, two mango schemes and a mango-avocado scheme, have been able to move to that level, apparently because they are among the simplest MIS’s and have very limited downside. Read more here