In defualt or dispute on rent?

Announcements - Arrow Primary Infrastructure Fund

31 July 2019: Default Notice served on Murray River Organics

Arrow directors advise that solicitors acting for Sandhurst Trustees Limited have served a Notice of Default on Murray River Organics (MRO), the tenant of the Fund’s Colignan Farm property near Mildura.

The Notice was served yesterday in relation to rent and GST totalling $689,511.52 which was due on 1 July 2019 and remains unpaid. The Fund holds rent security in the form of a bank guarantee for $824,750.00 as well as a Deed of Guarantee and Indemnity from the listed company Murray River Organics Group Ltd. The Lease provides that if the above material breach is not rectified within 30 days the Lessor has the right to re-enter the property and eject the Lessee.

MRO are claiming that Irrigation Works recently undertaken on the property should be treated as a “replacement” items by the Landlord and not new works, which would cause the rent to increase. The amount of rent and GST included in the disputed invoice that relates to all Irrigation Works is $81,933. Despite written requests MRO have not quantified their disputed amount nor provided any details of their claim. In regard to all capital works undertaken on the property Arrow believes it has acted entirely within the terms of the Lease and as previously agreed in writing with MRO’s senior management.

Arrow has also taken up with MRO other breaches of the Lease by MRO and concerns about their management of the property generally.

https://www.arrowfunds.com.au/fund-announcements/

I wonder if:
1. it was resolved/rectified within the 30 days
2. the dispute has legs or if it was a delaying tactic based on cash flow