From the Australian news media CITY BEAT: Andrew Main From: The...

From the Australian news media
CITY BEAT: Andrew Main From: The Australian November 25, 2009 12:00AM

GREAT SOUTHERN DUCKS LINEUP UNDER GUNNS

THINGS nearly got exciting yesterday in the Victorian Supreme Court over Great Southern.
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The receiver of Great Southern, McGrath Nicol, has been trying to get some legal ducks in order before the 40,000 investors in Great Southern's 10 Managed Investment Schemes come to choose which potential replacement Responsible Entity (R/E) to choose, if any.

There are three on offer with one, Gunns, getting the nod from the receiver, but it's all up to the growers to decide whether to bat on, and who with, or allow a wind-up.

We won't get an outcome until later today but it's worth shooting down one furphy now. It's been said McGrath Nicol wants to get the court to agree to its voting the 15-30 per cent of the schemes that belong to the defunct Great Southern companies, to railroad Gunns in as the new R/E. But we understand it's much more about making sure that as many votes as possible get used, since every motion requires the support of a minimum of 50 per cent of all the grower investors in each scheme. We understand the receiver would be just as happy for those votes all to be excluded as long as that action reduced the pool of votes overall.

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Also, it's reportedly just trying to make sure that the outcome of the votes has legal standing when they do go ahead. That's because the WA courts overturned a similar process involving Alpha Wealth Financial Services and the Frankland River Olive Company, forcing the new Responsible Entity to repay growers what were classified as mistaken payments.