I'm not disappointed at the outcome considering I never got a...

I'm not disappointed at the outcome considering I never got a vote that relates to the Great Southern Plantation schemes that are in the bowels of Gump somewhere.




Court rebuffs Macquarie over Gunns schemes
BY:RICHARD GLUYAS From:The Australian July 17, 2013 12:00AMIncrease Text Size Decrease Text Size Print
MACQUARIE Group has been rebuffed in its bid to seize control of a $500 million portfolio of Gunns managed investment schemes, with a court finding that material provided to investors for a vote on the change in control was misleading and deceptive.

The Victorian Supreme Court ruled yesterday that the results of scheme meetings held in May, where investors strongly supported the appointment of Macquarie Forestry Services as manager and WA Blue Gum as the new responsible entity, were invalid and had no effect.

A spokesman said the scheme investors, or growers, were disappointed with the court's decision.

"They're considering their next steps," he said.

Options include an appeal and a second round of scheme meetings with new documents that address the court's concerns.

Macquarie and Gunns liquidators and receivers have been jousting over the future of the six schemes, with the investment bank accusing its adversaries of planning a firesale of the assets.

The receivers KordaMentha have said the growers relied on misleading and deceptive information in Macquarie's explanatory memorandum when voting to remove the responsible entity Gunns Plantations, which is under the control of liquidators PPB Advisory.

Paul Anastassiou SC, for KordaMentha, also told the court that a calculator on the Macquarie website designed to help growers estimate their returns from a restructure of the schemes was "rubbish".

Announcing his "draft" reasons yesterday, judge Ross Robson said he had considered only some submissions, including the issue of past and future rent obligations on the Gunns woodlot leases.

Justice Robson said rent "went to the heart" of the Macquarie restructure proposal, with $11 million to $12.4m already outstanding and further obligations accruing at $1m-$1.2m a month.

He said the proposal had created the false impression that the growers were "unburdened by the outstanding obligations to third-party landlords and the ongoing rental obligations to those landlords". Justice Robson said the claim that WA Blue Gum, as the new responsible entity, would be entitled to rights under the leases but not the obligations was an untested legal proposition. This was misleading and deceptive, he said.

The judge said he had not considered the Macquarie calculator, and other issues, and he reserved his decision on those matters.

Macquarie and WA Blue Gum had argued that the target audience of any remarks had to be considered.

"The choice for the growers is to vote for the change of responsible entity or to vote for things to stay the way they are," Garry Bigmore QC said. "They overwhelmingly voted for change.

"We are dealing with people who are in a horrible position.

"They are either going to lose their investment and hope that the liquidator will send them something one day from the trees, which is unexplained and unparticularised and unanalysed.

"Or they have a prospect of Macquarie coming in and negotiating for a better price for the sale of the trees or continuing the schemes to fruition, even if demand is delayed."

Court orders are expected when Justice Robson hands down his final judgment.