The Timbercorp Growers Group remains committed to the installation of an alternative responsible entity (RE) despite the liquidators KordaMentha seeking a court order yesterday to wind up the olive and almond schemes.
"Despite what KordaMentha has said in court we continue to oppose the wind up of the schemes," Garnaut Private Client Advisers head of research and member of the Timbercorp Growers Group Chris Rylands said.
"We continue to believe that the best outcome for the growers is installing a new temporary RE and to assess and restructure the projects over time."
KordaMentha is currently seeking orders from the Supreme Court of Victoria to wind up the two projects because they are insolvent.
Counsel for the liquidator Philip Crutchfield said more money would have to be invested even if a new RE was put in place.
If the schemes were not wound up investors could be worse off because there was no prospect of any financial return or financial assistance, Crutchfield said.
According to KordaMentha spokesperson Mike Smith, three million almond trees need to be pollinated between late July and late August at a cost of $3.4 million.
"The orderly wind up was the best chance of securing the $3.4 million from the bank," Crutchfield said.
The ANZ Banking Group said it might provide short-term funding for the almond schemes if they were wound up.
However, Rylands said the Timbercorp Growers Group called into question KordaMentha's analysis.
"This is based on their own cash flow analysis of the projects and we are calling for the court to allow an independent party to conduct analysis," Rylands said.
Although the court was asked to deliver an expedited judgement the case continues today.
