Timbercorp growers press ASIC on RE

Timbercorp growers’ lobby group, AAGRI, is scheduled to meet with the Australian Securities and Investments Commission (ASIC) today and will argue for an independent Responsible Entity (RE) to replace Korda Mentha, according to Siger Super Services adviser Kerree Bezencon.

“We plan to carry a very important message to ASIC — the growers want an independent RE to replace Korda Mentha,” she said.

“Such an RE will not be in conflict, as Korda Mentha is at present trying to represent the big banks and the growers with competing interests.

“ASIC could simply apply to the court for this to happen and avoid delays and large costs to the growers.”

Bezencon said some potential REs have applied to ASIC to take over the Timbercorp schemes, but had not heard anything back from the regulator.

“We are really frustrated by the utter lack of concern by a disinterested ASIC, followed by the professional organisations such as the FPA, CPA, National Tax Accountant Association, and the Self Managed Super Fund Specialist Advisory Association,” she said.

“It seems the only ones left standing up for the growers are their advisers and accountants.”

Money Management understands Korda Mentha plans to have a teleconference meeting today with advisers to propose it remains the RE for Timbercorp schemes.

A spokesman for the administrator was unable to confirm details of the meeting.

Bezencon said this move by the administrator was unacceptable.

“No way could we, the committee, recommend that Korda Mentha should be the RE,” she said. “It’s what we’re working against. We want an independent RE fighting for us.”

Bezencon said the committee wants an independent company such as Huntley’s to become the RE.

“Huntley is the favoured RE as it doesn’t have any association with the creditors and it has the experience in running an RE,” she said.