Investors suffer in Timbercorp collapse Chris McLennan | December 13, 2012
TIMBERCORP investors will get a measly $20 million from the collapse of the company's almond plantations.
They had initially sought $300 million.
The Supreme Court of Victoria has approved a settlement between major creditors and investors.
A controversial recipient of MIS tax breaks, Timbercorp collapsed in 2009, leading to breakup of its almond, olive and forestry operations.
It was also Victoria's biggest water owner.
More than $4 billion was poured into the company which eventually went into receivership when it was not making enough cash to pay its debts.
At the time the company was wound up, Timbercorp had thousands of investors from all over Australia.
Major secured creditors were the ANZ and Westpac banks.
More than 2000 investors launched a failed class action in the Victorian Supreme Court in 2009 seeking more than $300 million.
The company's giant almond plantations in the Robinvale and Boundary Bend regions were eventually sold to Singapore's Olam International for $128 million.
The sale included 8096 hectares of land, and 40,825 megalitres of permanent water rights.
A further $30 million owing to forestry scheme investors has also been freed up.
The sale to Olam and other asset sales reaped about $350 million and about $170 million has already been distributed to secured creditors.
TIM Price at posting:
0.0¢ Sentiment: None Disclosure: Not Held
