Call for Timbercorp to be wound up

MELBOURNE: The administrators of troubled agricultural projects manager Timbercorp have recommended that companies in the group be wound up.

"It is our opinion that it would be in creditors' interests for each company within the group to be wound up," administrators KordaMentha said in their second report to creditors, which was released yesterday.

"No DOCA [deed of company arrangement] has been proposed, and it is not in creditors' interests to bring the administrations to an end."

Timbercorp was placed in administration in April, with liabilities estimated at A$930 million ($1.2 billion).

The Timbercorp group consists of Timbercorp and 40 subsidiaries.

The group operated 33 managed investment schemes and three private offer schemes in relation to forestry and horticulture assets.

KordaMentha said it was not in a position yet to comment on the estimated return to creditors from a winding-up of the companies in the group, or the likely timing of a return.

Returning the group to the control of existing directors was not a commercial proposition.

KordaMentha said any decision to wind up the companies in the group would not result in the automatic winding up of the 36 MIS (managed investment schemes) and private offer schemes.

A second meeting of Timbercorp creditors is set for June 29.

- AAP