16 May

Back to Business for Timbercorp Olives

By Sandra Godwin,

The Boundary Bend olive harvest was under way this week after a halt caused by Timbercorp’s financial woes.

timbercop-olives-harvestingAfter a three-day shutdown, workers at Timbercorp olive groves at Boort and Boundary Bend got back to the business of harvesting olives last week.

The harvest ground to a halt earlier in the week as Timbercorp administrator Mark Korda and grove managers Boundary Bend Management spent almost two days in the Federal Court in a bid to find a way to pay for it.

Boundary Bend executive chairman Rob McGavin said they struck a deal which ensured the rights of all parties were protected.

An initial proposal that the harvest be funded by the sales of oil from the crop was rejected in favour of a plan for Boundary Bend to buy the unharvested fruit for $15.5 million.

Boundary Bend will take the first $11 million from expected sales of $26.5 million of olive oil to cover its costs.

The balance will go to Timbercorp grower investors.

Mr McGavin said he was happy with the deal, even though it meant Boundary Bend assumed all the risk.

“You can say Boundary Bend is worse off but we’re not an olive company without olive oil,” he said.

“So this is just what we had to do to get it over the line.

“We have customers relying on the oil. This absolutely ensures that.”

Mr McGavin said the deal had to be done quickly to protect the fruit and prevent any effects on the next year’s crop.

[Source] Click here

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