were we blind sighted?, page-5

The ALMOND PLANTATIONS

Manager severs ties with Great Southern
Growers vote on RE

By Alice Uribe
Thu 18 Feb 2010
Rural Funds Management will let members vote on whether or not to sever the relationship with Great Southern.




In an effort to cut all ties with Great Southern, Rural Funds Management (RFM) is seeking to become the responsible entity (RE) for the failed agribusiness manager's two almond projects.

A meeting has been called for 24 February for growers to vote on the proposal.

For RFM to become the RE, it requires majority approval from 50 per cent plus one of the growers in the Great Southern 2007 and 2008 Almond Income Projects.

RFM is the RE for the unit trust RFM RiverBank, which controls the land at Hillston where the almonds are grown.

"By aligning the interests of the almond growers and the RiverBank unitholders under the RFM brand, we are giving greater certainty to both types of investors," RFM managing director David Bryant said.

Growers who agree to the arrangement will be required to meet maintenance costs and lease payments and unitholders will be given the opportunity to acquire additional units.

"The capital raised in RiverBank will be used together with grower payments to ensure the almond projects reach maturity and become cash flow positive," Bryant said.

According to RFM, the projects are expected to be cash flow positive by 2013 and reach maturity by 2014.

RFM was founded in 1997 and is an independent Canberra-based fund manager that specialises in the farming sector.

It was acquired by Great Southern in August 2007 and changed its name to Great Southern Funds Management.

Great Southern collapsed last year with debt of around $700 million