Forestry carbon credits fund collapses

First Growth Funds, an Australian company focused on forestry carbon credit projects, was placed in administration last night by its secured lender, Noble Investments Superannuation Fund. The move followed attempts to negotiate a restructure of about $1.2 million in debt and comes after the company reported a $1.35 million after‑tax loss last year on $240,207 of revenue.

The article names First Growth Funds as the company, its secured lender Noble Investments Superannuation Fund which placed it into administration, company secretary Mourice Garbutt who spoke about the restructuring talks, and board member Peter Mullins. The company also operates a wholly‑owned subsidiary, First Growth Ventures.

First Growth Funds specialised in forestry carbon credit projects and had active investments in Asia, the Pacific islands and Australia. It also had an investment in a digital video group and described a focus on emerging technologies in high‑growth companies and markets.

According to the article, the company generated $240,207 in revenue last year and recorded a $1.35 million loss after tax. It was negotiating to restructure roughly $1.2 million of debt prior to being placed in administration.

The company secretary said First Growth Funds had been seeking to defer principal repayments to better align operational receipts and wanted to issue further equity to support increased investment in its carbon business portfolio. The board expressed confidence that further investment could establish valuable carbon credits aimed at voluntary buyers.

The article notes the company’s shares had been trading flat at 0.1. Being placed in administration typically creates uncertainty for shareholders — outcomes depend on the administrator’s actions, possible debt restructuring, equity issues or asset sales. The immediate impact is likely increased risk to any existing share value or expected income streams.

First Growth Funds, through First Growth Ventures, had deals to finance and assist project developers in Indonesia, Asia and the south Pacific. The immediate focus was developing forestry carbon credits by preserving rainforests in southeast Asia, creating credits for each year of a project’s life. The company believed typical project lives exceeded 20 years, representing a potential annuity income stream.

Investors should watch announcements from the administrator, any formal debt‑restructuring proposals, statements about equity issuance, and updates on the company’s forestry projects. These developments will determine whether creditors, new investors or the administrator pursue restructuring, asset sales or other outcomes that affect investor returns.