Willmott Forests felled

One of the last remaining agribusiness managed investment scheme (MIS) companies has fallen over, with Willmott Forests placed into administration and receivership.

The financiers of the listed company, the Commonwealth Bank (CBA) and St George bank, yesterday appointed Korda Mentha as receivers and managers. Willmott also appointed its own voluntary administrator, A. T. Fernandez.

Since July this year Willmott has been trying to find a way to repay debt through asset sales and cuts to operating costs following significant falls in retail MIS sales. During that time Willmott’s banking syndicate waived compliance with certain provisions of its agreement, but that ended yesterday with CBA and St George terminating the waiver and calling in all loans immediately.

Willmott joins companies including Great Southern, TImbercorp, FEA Group, the Rewards Group and others on the MIS casualty list.

KordaMentha said Willmott itself had raised around $400 million in MIS investments from around 8,000 grower investors, but like many other now failed agribusiness MIS companies, without ongoing MIS inflows, could not survive.

The first material harvest from those investments is not expected for well over a decade, KordaMentha said.

The receivers will now assess the funding requirements for each of the schemes and try to execute a solution in liaison with key stakeholders.