A RUNNING dispute between the mayor of a central Queenland town, John Wharton, and the financier of his boomtime cattle expansion, Bankwest, is up in the air as a last-ditch effort to save his properties looks unlikely to succeed.
Mr Wharton's properties, one of which has been held in his family for almost 100 years, are in the hands of receivers KordaMentha, The Australian Financial Review reports.
The receivers and the bank have just reviewed a refinancing proposal submitted by the Richmond mayor, who has been drumming up community support for a new forum which seeks to challenge the actions taken by banks against troubled farmers.
Mr Wharton, who confirmed he was still in prolonged discussions with his bank and KordaMentha, bought several cattle stations during the boom of 2007 – some of which have since sold for discounts of up to 40 per cent.
At the time he bought the properties he also refinanced his cattle operation, which included the nearly 100-year-old Runnymede Station, with Bankwest. The financing arrangement required Mr Wharton to sell part of the properties before a certain time, which he failed to do.
Mark Mentha of KordaMentha said Mr Wharton's business had not been viable since at least October 2010 and the properties were now likely to be sold.
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