ASIC has agreed to explore options for installing a temporary independent responsible entity (RE) to replace KordaMentha after meeting Timbercorp creditors committee lobby group Accountants Advisers and Grower's Interests (AAGRI) yesterday.
According to committee member Chris Garnaut, ASIC has committed to exploring options, together with AAGRI, for the temporary replacement of the RE.
"It was a very positive meeting with ASIC and we are now confident that ASIC supports the growers' interest," Garnaut said.
InvestorDaily contacted ASIC, but no comment on Timbercorp or the meeting was forthcoming at the time.
A KordaMentha spokesperson said they had been briefing ASIC regularly.
"But we would welcome any new responsible entity as long as they are aware of the obligations, which include inheriting the liabilities of the old RE," the KordaMentha spokesperson said.
AAGRI has been vocal in its desire to replace the current RE KordaMentha.
"We are not convinced that it is in the growers' best interests to wind up Timbercorp as we don't believe that the company has been researched appropriately. The next step is to advance those REs to the state where they can take over," Garnaut said.
Gunns Limited, Huntley Management and Primary Securities have been earmarked as three potential REs.
Yesterday, AAGRI sent out a letter to all investors asking them to contribute to a fighting fund so it can continue the search for a replacement RE.
"The lawyers have been working pro bono up until now, but they can no longer continue to do this," Garnaut said.
Money is also needed to fund viability assessments.
"There are a host of legal and short-term financial hurdles to be jumped, but it does seem that the projects can be structured and managed to perform exceptionally well," committee member Kerree Benzencon said.
"We're not asking that they actually rescue us holus-bolus, just throw a life-jacket so we can assess the situation. We'll do the rest," she said.
