Receivers dispense with FEA executives

The receivers and managers appointed in the wake of Forest Enterprises Australia Limited (FEA) going into administration have told the company’s two most senior executives that their services are no longer required.

In an announcement released to the Australian Securities Exchange late yesterday, the receivers said that the FEA chief executive, Andrew White, had been advised that his services were no longer required effective from last Monday; while one of FEA’s founders, Tony Cannon, had been similarly advised.

The announcement noted that Cannon had not resigned as a director of the company.

It said that a non-executive director, David Taylor, had resigned with effect from last Monday.

In the meantime, a website, www.feagrowers.com, has been established as “an information resource for the approximately 11,000 grower investors in the 16 forestry managed investment schemes for which FEA Plantations Limited is the Responsible Entity”.

Among other things, investors and shareholders are being asked to support the appointment of BRI Ferrier as the voluntary administrator.

It said FEA’s financiers, Commonwealth Bank of Australia Limited and Australia and New Zealand Banking Group Limited, had recommended to the directors that they appoint Korda Mentha for the role of voluntary administrator.

“The directors chose to act independently and appoint BRI Ferrier, as they believed it was in the best interests of the company and stakeholders,” the website said. “There is concern that the banks may make a motion to overturn BRI Ferrier’s appointment in the first Meeting of Creditors in favour of another company.”