Great Southern grape hopes wither on the vine 13/10/2009 10:56:00 AM Some 440 people who sank $28 million into Great Southern's 2008 grape project are unlikely to see any of their money again after the vines were permanently damaged because there was no money for water, and receiver McGrathNicol said the project would have to be wound up. According to The Australian Financial Review, investors in the 2006 and 2007 grape projects are also likely to lose their money because these projects do not have enough money to fund a commercial harvest and are likely to be wound up.
In fact, all 43 of Great Southern's projects have run out of money meaning that even basic maintenance is impossible, putting at risk the commercial viability of crops and their harvest on which investor returns depend.
Great Southern owes more than $700 million to creditors, including about $600 million to its bankers, which appointed McGrathNicol as receivers in May.
The Australian Financial Review Source: http://www.afr.com
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