FARMERS who leased land to Timbercorp for tree plantations throughout the Great Southern are hoping for a return to normal business after its forestry assets were sold this week.
Timbercorp liquidator KordaMentha announced that settlement for the sale had gone through on November 2.
The assets were purchased by American-based Global Forest Partners, trading under the name Australian Bluegum Plantations Pty Ltd.
Maintenance and fire prevention work has already started on many of the 92,000 hectares of tree plantations in the region.
Farmers are confident lease payments will be backdated to prior to the collapse of the managed investment scheme company.
Lower Kalgan farmer John Powis said most farmer lessors would have received most of the funds owing to them.
“I’m just waiting to check with the bank,” he said.
“I feel very secure now.”
It is believed only seven of the 700 lessors have not been covered in Timbercorp’s sale.
These had plantations still to be planted or had already been harvested.
More than 10,500 investors who stood to lose every cent they invested will now share $198 million.
But this might not help grower-investors who took out mortgages to invest with Timbercorp.
They may receive less than 20 cents in the dollar.
The Victorian Supreme Court approved the sale of the Timbercorp’s bluegum plantations for $345 million in late September.
Global Forest Partners Funds already manage more than 40,000 hectares of pine plantations in southern NSW and the Green Triangle region.
The company began investing in Australia 10 years ago, with the total value of its global plantation assets exceeding $2,500 million.
It provided one of seven submitted formal bids when the deadline expired on September 18.
Its ability to provide the cash up front is believed to have been in its favour.
GFP’s Asia Pacific Investments director Michael Edgar said the immediate priorities would be to implement fire protection plans, resume cultivation and maintenance programs and reactivate sales strategies.
“All existing staff will be invited to stay and the business will be managed locally,” Mr Edgar said.
KordaMentha senior partner Mark Korda said the result was a good outcome for investor growers, creditors, staff, customers, landlords, local communities and the Australian timber industry.
“The business will be in the hands of first-rate, experienced plantation forestry managers who are committed to long-term excellence,” he said.
Meanwhile, State Shadow Forestry Minister Mick Murray has called on the Barnett Government to bail out the financially-troubled Forest Products Commission (FPC).
He claimed it could start to make a profit with Government support, potentially saving 75 jobs and future plantation projects.
Mr Murray said FPC general manager Dr Paul Biggs confirmed in a Parliamentary committee hearing this week that without any remedial action from the Government the Commission was unsustainable in its current form.
“The FPC is a potentially profitable business but a series of events beyond its control have caused a shortfall of $7.5 million,” Mr Murray said.
“The Commission is currently owed almost $9 million by private timber companies.“
“Forestry Minister Terry Redman has refused to help the Commission cover its $7.5 million deficit in the short-term to ensure jobs are not lost, are not put in jeopardy,” Mr Murray said.
He said the conclusion of Government funding for its tree-planting program and a series of events including two serious wildfires had left the Commission in dire financial difficulty.