Great Southern's hefty liabilities
Great Southern had total liabilities of $996.4 million dollars as at the end of April, according to administrators Ferrier Hodgson. The agribusiness manager also had borrowings of $833.9 million and trade debtors of $33.1 million.
The company had assets of $1.6 billion, of which $582.3 million is investment properties. This is land trees and other crops are grown on that is owned by the company, as Great Southern leased little land compared to its competitor, Timbercorp.
Great Southern also owns $40.7 million of water rights and $133 million of plant and equipment.
The cattle scheme land is valued at $98 million and is currently for sale, with a number of Australian and international buyers in negotiation with the company.
Now that Great Southern has entered into administration, it is expected the price for this land will be less, as the buyers will see it as a ‘fire sale’ rather than a genuine trade sale.
A figure of $110 million has been quoted for the sale of this land, but as each week of administration wears on, the price will fall, Money Management understands.
Great Southern’s responsible entity company, Great Southern Managers, has assets of $553.5 million and liabilities of $56.1 million.
Its main assets are inter-company loans of $426.3 million and $58 million invested in Great Southern Land Holdings and Great Southern Olives Company.
However, the company also received $43 million in advance payments for plantations schemes this year and $11 million for horticultural schemes.
Ferrier Hodgson partner Martin Jones said this money was held in trust and would be returned to investors in due course as no crops had been planted.
There are a total of 45 Great Southern managed investment schemes current with 43,000 investors.
The company raised $2.2 billion in its 21 years of operation, with the bulk raised for timber schemes.
There are a total of 71,451 investor units issued in both forestry and horticultural schemes.
The cattle schemes, which raised $165.3 million, have been wound up as part of Project Transform, initiated by Great Southern earlier this year.
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