TIMBERCORP almond growers have come up with a $200 million proposal they say will trump the $128 million sale of Timbercorp's almond assets to Singapore's Olam International.
The offer came as Victoria's Supreme Court was told Timbercorp liquidator KordaMentha was justified in extinguishing growers' rights in selling the almond assets to Olam.
The growers' almond committee said their proposal had the backing of Credit Suisse, which would negotiate for the mandate to fund the deal.
Spokeswoman Kerree Bezencon said the $200 million proposal comprised purchase of the land, infrastructure, water rights, a parcel of shares in almond plantation manager Select Harvests and a shareholding in Timbercorp Primary Infrastructure Fund.
Ms Bezencon said the proposal was better for the banks and growers, as growers got the choice of staying in the projects with an option to buy the assets or sell out. The banks would also receive a higher payout.
Under the Olam agreement, the growers get $6 million and the banks the $122 million balance minus costs.
"The funding issue now seems to be resolved and the growers are asking the liquidators to delay the sale process so our bid can be properly considered," Ms Bezencon said.
The Timbercorp grower group, representing 7000 Timbercorp almond investors, this week petitioned Justice Ross Robson in the Supreme Court for formal recognition of their cropping rights.
The almond growers claim the Olam deal and the $6 million offer leaves them with virtually nothing and crushes their rights.
Leon Zwier, on behalf of plaintiff Timbercorp Securities, told the court he needed a court direction by tomorrow that the liquidators were justified in doing the Olam deal and extinguishing the growers rights.
Mr Zwier said the creditors - a syndicate including ANZ and Westpac - had debts of $245 million, which exceeded the $128 million sale figure.
The market had been tested. "What the market has said is these assets are worth $128 million," he said. An independent liquidator, Ian Carson, had also recommended acceptance of the $6 million offer. Mr Zwier said it was urgent the offer be accepted because the sale agreement with Olam stipulated that growers' rights be extinguished by the deadline of October 9 - tomorrow.
Also, the farms required maintenance, fertiliser, water, treatment and even capital expenditure, and the maintenance agreement by the manager Select Harvests expired tomorrow.
Mr Zwier said the estimated expenditure required between now and the end of December was about $16 million, and the banks' offer also had to be accepted by tomorrow.
"Your Honour has a package and Your Honour will either give the direction to protect the liquidators … if Your Honour's disinclined to do it, well, it will fall over," he said.
Justice Robson reserved his decision.
Email a friend