Hi edliw,Have no involvement with GTP. As stated I am into whole...

Hi edliw,

Have no involvement with GTP. As stated I am into whole farm management as a consultant.

However with regard to the land, I assume all is mortgaged. At present the interest rate will be established by a base rate plus a risk margin. The latter may consist of borrower risk margin & an industry risk margin.

If the company ends up in the hands of a receiver that person will need to address the loans, the conditions, the base rate, the risk margins and current security offered for each loan.

The options are probably wide but the likely costs of these options could be great. If land values fall and there is a significant shortfall between sale price & debt where does the liability rest (if no other assets available)? Will the lenders forgive the balance or will they pursue any one else who may have an interest in each parcel of land? I do not know!!!

If property values fall from forced sales we have a knock-on effect because the new valuations have a serious impact on the basis of lending protocol, namely Loan to Value ratios (LVR'S).

As i've said before any tree owner should be seeking legal advice with regard to current situation & any consequences resulting from forced sales & liqidation.

By the way I do not think GTP will fold!!!