Almond investors left with little choice over vote

Separate meetings of the 2007 and 2008 almond projects will be held in Sydney, at which the growers will decide whether to appoint Great Southern's former funds management arm as the new operator.

However, the investors know they have little alternative but to back the plan proposed by Rural Funds Management since McGrathNicol, the receivers of Great Southern, have warned that the current manager is insolvent and has no money to maintain and develop the almond trees.

A vote against will not only trigger the winding up of the schemes (in which there is at present little commercial value) but will also see the investors' trees handed over to the owners and leasors of the land they are growing on, as Great Southern is in default of its lease payments.

Rural Funds Management, which has just agreed a management buy-out from Great Southern with the receivers, will be the beneficiary in both cases as it is the responsible entity and operator of the investment fund which either controls or owns the two properties.

By agreeing to RFM replacing Great Southern Managers, the growers will at least maintain a direct interest in the schemes.

According to proxies received before this morning's deadline, 56 per cent of growers in the 2007 scheme have voted in favour of RFM's appointment - enough to guarantee the handover. The support for the 2008 scheme is touch and go, with 45 per cent of investors supporting the move, 5 per cent short of the necessary threshold.

There were signs yesterday that it might be adjourned to give the remaining grower investors more time to consider their positions.

- The receivers of the failed agri-business investment group Timbercorp have put its shareholdings in the almond farmer Select Harvest and olive oil producer Red Island Australia up for sale.