The administrator of failed timber company Timbercorp has warned its 18,000 investors that the viability of most of the agribusiness schemes in which they sank more than $2 billion is doubtful, because most need cash injections to survive.
The Australian Financial Review reports that the grower-investors have been in limbo since Timbercorp collapsed four weeks ago into what its administrator, Mark Korda, describes as one of corporate Australia's "most complex administrations".
In a letter to the grower-investors sent out over the weekend, Mr Korda of KordaMentha says that, while minimal operations are continuing on all of the 50 projects to protect the value of the assets, critical deadlines are approaching and options for funding are "extremely limited".
It is understood very few of the projects are cash positive, which means the only way ahead is to get a cash injection - something that is unlikely in the current environment.
Mr Korda said he would begin sending grower investors the initial results of his assessments of the viability of the individual projects by the end of the week.
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