Quintis bust-up: friendships lost as founder Frank Wilson attempts to return to sandalwood company
Sean Smith
Saturday, 13 January 2018 4:30AM
Sean Smith
Frank Wilson has spoken at length for the first time since leaving Quintis in March.Picture: Nic Ellis
It is the corporate bust-up which has investors and WA’s business community talking.
But Quintis founder Frank Wilson says any friendships lost in his falling-out with the sandalwood company’s board are less important than getting the group “back on its feet”.
Tensions exploded into the open in mid-2017 with Quintis declaring its intent to pursue its former chief executive over an alleged default on a $11 million loan and have since escalated with the one-time WAFL player suing the board for defamation, a claim directors deny.
Recently, he has been scathing of the company as the spearhead of a campaign to roll his former fellow directors, one of them the best man at his wedding, Quintis chief executive Julius Matthys.
“This is not about friendships, this is about getting Quintis back on its feet,” Mr Wilson told
WestBusiness in his first major interview since leaving the company in March.
“Those guys have chosen to take a position with me and I’m happy to respond accordingly.
“Julius Matthys and (chairman) Dalton Gooding I wouldn’t have included in my friendship group for a long time, and I’m sure they’re not terribly interested in having me as a friend. But this is not about friends. I have plenty of friends, I don’t care if I lose a couple in the process.”
He says it is “disappointing” that rather than promote a plan or strategy, “they (the Quintis board) ... blame Frank”.
“Well it’s gone beyond that now, I’ve haven’t been there for 10 months and I thoroughly refute the suggestion I’m to blame” for the company’s issues.
Mr Wilson, who left Quintis to plot a buyout with unidentified investors who have since dropped out, has jointly requisitioned a meeting of Quintis shareholders on behalf of a group of investors angry about the company’s financial performance since his departure.
The dissidents want to dump Mr Matthys, Mr Gooding and John Groppoli and install their own team of directors.
If successful, Mr Wilson would return to Quintis in a sales and marketing capacity to address tepid sandalwood sales at the group, which is locked in laborious and complex negotiations over a company-saving recapitalisation with bondholders and potential investors.
His involvement has divided shareholders, with social media postings suggesting that while many are supportive of Mr Wilson’s rejoining Quintis, others hold him at least partly responsible for the plight of the company, which is being probed by the corporate regulator and faces two class actions over alleged disclosure failings. Mr Wilson insists it is wrong to overplay his role in the spill campaign. “It’s not all about me,” he said. “I’m a very important part of the team, but it’s a team.”
He said the three candidates nominated as replacement directors, retired businessman John Allen, sandalwood grower Robert Boshammer and company director Craig Duncan “add value, have a proven track record and leadership skills”.
“There’s never been a situation where you can’t get better or improve, but I successfully ran the company for 10 years and what I bring is my relationships with the end market and all facets of the business,” he said.
Mr Wilson says his skills could have been put to good use last year when he offered to help Quintis. The offer was rejected, with Mr Gooding telling the annual meeting last month that Mr Wilson had refused at the time to sign protocols drawn up by the board.
“They (thought) they could do it without me and now all shareholders have suffered as a result,” Mr Wilson said.
“It’s gone beyond that now, I’ve haven’t been there for 10 months and I thoroughly refute the suggestion I’m to blame”
for the company’s issues.” - Frank Wilson
The dissidents want a new chief executive, propose slashing overheads and say its team has the market knowledge to get sales ticking over again.
Mr Wilson says the group’s board ticket offers agricultural experience he claims is lacking in Quintis.
“We are just very keen to get this company back on its feet,” he says. “It’s a company which has a lot of potential. Nothing has changed in the past year. Sandalwood is still valuable, it’s highly sought after and the company has a very strong position in the market.
“Those fundamentals still exist.”
But Mr Wilson and the spill group say the company needs new leadership and management.
The dissidents claim the backing of at least 20 per cent of Quintis and say support is “growing by the day”.
But the key to their success is gaining the support of the US noteholders who now have the power of life over Quintis, which owes millions of dollars in back interest. The company has only survived with the forbearance of the noteholders, who have also provided funds to see the company through its cash crisis.
Mr Wilson says he and his group are talking to the noteholders and are backed by investment capital and unnamed sandalwood buyers.
“We have not been idle,’ he said. We have been out there talking to people in the market who have confidence in us to deliver and supply. These are very highly credible reputable parties, but won’t deal with this current board.”
The dissidents say a new Quintis board is needed to “stabilise the company, resume effective sales performance (and) to restore value”.
Their frustration exploded at the AGM where they interpreted the board’s stated inability to answer various questions because of legal and confidentiality constraints as stonewalling.
They cite a list of concerns including grower dissatisfaction, the company’s failure to sell any plantations in the important June quarter, the absence of a recapitalisation after seven months and communication shortcomings.
The company has, in fact, put out dozens of stock exchange announcements since March, but it is prevented from providing any details of the recapitalisation negotiations.
And it has argued that sales dried up because the company’s travails and financial problems deterred sandalwood buyers from dealing with the group.
Quintis has refused interview requests from
WestBusiness.
