THE swarm of bees needed to pollinate Timbercorp's vast almond groves must be ordered within days, the failed company's liquidator said yesterday, adding urgency to a Supreme Court case surrounding the fate of investments linked to the almond projects.
Philip Crutchfield, appearing for Timbercorp's liquidator, KordaMentha, told the court yesterday that 52,000 bee hives — containing 1.6 billion bees, at a cost of $3.6 million — might need to be ordered as soon as today, depending on when the almond groves flower. Leaving it too late could jeopardise the crop, according to an affidavit submitted by the liquidator.
"There's a debate about whether it needs to be (today) or whether it is next week," Mr Crutchfield said. "But there's no serious contest that (the order) needs to be made urgently."
The bees have emerged as an issue in the case before Supreme Court Justice Ross Robson, who is considering an application by KordaMentha to wind up Timbercorp's 14 almond and olive managed investment schemes.
Thousands of investors have money tied up in the schemes, which KordaMentha said were loss-making and needed a combined $300 million to run for another year. It said the Timbercorp entity responsible for running the schemes had no money — meaning it was unclear where funds to pay for the bees, and other urgent maintenance, would come from.
Yesterday, Mr Crutchfield argued that winding up the schemes — thereby separating the orchards from the complex MIS structure placed on top of them — would provide the best outcome for growers, because it would make it quicker and easier to sell or recapitalise the projects.
In evidence, KordaMentha's Mark Korda said it would be "very, very difficult to get these assets recapitalised or sold" unless they were "unencumbered" of the MIS structure.
KordaMentha tendered as evidence a letter from Timbercorp's financier, ANZ, that said that, if a wind-up and sales process proceeded, it might "contemplate" funding care and maintenance for the schemes for a "short period".
Timbercorp's investors committee opposes the wind-up. It wants the court instead to appoint a replacement "responsible entity" to take over the running of the schemes.
Crucially, it is unclear what rights investors would have to their assets, or what compensation they would receive, should a wind-up go ahead.
Garry Bigmore, QC, counsel for the growers' committee, asked Mr Korda why investors should not have more time to decide "which of any schemes they want to keep going, with which responsible entity?"
"You have applied a liquidator's mind to the problem," Mr Bigmore put to Mr Korda. "You have looked at the schemes and decided they are only worth winding up."
Mr Korda told the court the failed company had "plugged" cash-flow holes in the investment schemes, effectively "subsidising" investors. The schemes needed a cash injection, he said in an affidavit, and none of the four parties that had expressed interest in taking over the schemes "contemplate that the new or replacement RE will inject that cash".
The hearing continues today.
Also yesterday, KordaMentha said it was asking 23 Timbercorp forestry division staff — including seven in Hamilton in Victoria — to take leave without pay until October. They would be offered redundancies if they did not want to take the leave, KordaMentha said.
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