is this going to be a dog's breakfast

PPB challenged by Gunns growersPublished 4:54 AM, 4 Oct 2012 Last update 4:54 AM, 4 Oct 2012 Business spectator


Investors in the managed investment schemes run by collapsed timber group Gunns claim that Gunns' voluntary administrator, PPB Advisory, is in a conflict of interest by serving as a voluntary administrator both for the forestry group and for Gunns Plantation, according to The Australian.

The group of investors hope to protect their interests in hundreds of millions of dollars in timber plantings run by Gunns Plantations at 21 timber, almond and grape projects in Tasmania, as well as on the mainland on behalf of some 40,000 individual investor/growers.

The challenge from investors comes on top of class actions brought against collapsed scheme operators over alleged disclosure failings.

The Great Southern Growers Group has issued a letter in the hopes of attracting proxies from growers to supports its efforts to have PPB Advisory removed as administrator of the Gunns Plantation business and in place have BRI Ferriers take over the role at the first creditors meeting next week, The Australian reported.

“The administrators of plantations have obligations to growers which are likely to conflict with their obligations to other creditors of Gunns,” the growers reportedly argued in the letter. “PPB is presently the administrator of both companies and is therefore in a position where a possible conflict may arise.”

PPB declined to comment, but has delayed the day of the first creditors meeting to next week, The Australian reported