BUSINESS
Sandalwood growers muscle up for Quinitis plantations dramas
Sean SmithFriday, 28 July 2017 9:57AM
The growers are also seeking better communication from Quintis.Picture: Danella Bevis/Countryman
Nervous sandalwood growers with millions of dollars invested in Quintis’ plantations are banding together to try and protect their interests in the event of a change of control or collapse.
Dozens of growers and financial advisers have organised under a new “action” group, Sandalwood Growers, so they can quickly react to any developments at the financially vulnerable WA-based company.
The growers are also seeking better communication from Quintis, which they say has left them in the dark, and argue the company’s public travails have overshadowed the true worth of the sandalwood industry.
Co-founder and spokesman Teague Czislowski, a grower and Perth lawyer who once provided advice to Quintis on its plantations, says the group “wants the best outcome for growers”.
Quintis is in various talks with bondholders and other lenders, and potential investors and bidders with a view to securing its future. It has admitted that the talks are critical to its solvency.
Under managed investment scheme laws, growers’ interests in sandalwood projects dating back to 2002 are owned by a Quintis subsidiary, which manages, harvests and markets the trees on behalf of growers.
Mr Czislowski said the growers were worried that if Quintis went the way of failed MIS managers Great Southern and Timbercorp, not only would they lose the trees but they would be liable to repay the loans taken out with Quintis and other lenders to fund the investments.
“They’re very, very nervous about being crunched,” he said.
“Timbercorp and Great Southern showed us, no co-ordination, no organisation, you will lose your investment.
“So that’s our call to action.”
Mr Czislowski said also that growers were frustrated that the “positive story” of the sandalwood industry was not receiving the attention it deserved because of Quintis’ problems.
“This is still a genuine agribusiness that is worth something,” he said.
“There is value there if we can keep everything afloat and make sure growers are properly represented and Quintis is doing the right thing as the responsible entity in meeting its lease and management obligations.”
Quintis shares are due to resume trading on Monday. However, the company could well opt to again extend its already lengthy trading suspension.
The stock has not traded since going into a halt in mid-May after a savage sell-down.
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