19 Jun

Timbercorp : High costs dampen almond, olive takeovers

The administrator for failed agribusiness giant Timbercorp has been given approval by the Victorian Supreme Court to apply to wind up the company’s olive and almond schemes.

KordaMentha wants to end the schemes to make it easier to sell the 13 almond projects and 11 olive groves in northern Victoria.

Spokesman Michael Smith says a number of companies have expressed interest in buying the plantations and some companies are also interested in taking over the managed investment schemes.

But Mr Smith says anyone who takes over the schemes would have to accept all the associated costs and debts.

“Rent’s due from June 30, there are very large bills like electricity to run the irrigation and I’m talking maybe $100,000 a month,” he said.

“In almonds the trees have to be pollinated by bees in August and that alone is $4 million and Timbercorp simply doesn’t have the money.

“We’re running out of time, so whatever the solution is it has to come very quickly.”

[Source] Click here

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