Timbercorp administrators KordaMentha have refused to fund Clarendon Lawyers, who have been representing the creditors committee lobby group in its court case to install a replacement responsible entity for the failed agribusiness company.
"We have asked the administrators to indicate the source of their funding and to allocate from that source to a separate fund for investors," Clarendon Lawyers director Michael Fernon said in a letter to committee representative Chris Garnaut.
"We have not received any response to that request, and Mr Korda has now told you that he will not allocate any funds for this purpose."
As a result, Clarendon Lawyers have informed the committee members that they cannot continue acting for the representatives without further funding.
"Your involvement to date has been crucial. If you had not been involved, we have no doubt the schemes would now be on their way to winding up. We are prepared to continue in our role, but only on the basis that we are properly remunerated for our work," Fernon said.
The firm has been acting for the committee on a pro-bono basis.
According to Fernon, the cost of the work so far stands at a value of approximately $70,000.
The creditors committee has launched a fighting fund in an attempt to remunerate Clarendon Lawyers for its services.
The winding up hearing is set to continue on 15 July.
Fernon said if the almond and olive schemes are to be saved it is essential that new responsible entities be appointed.
"It may be that they will not be successful in saving the schemes, but at least the growers will have the comfort that a responsible entity has acted for them who is not insolvent," Fernon said.
