KordaMentha chases extension

KordaMentha has applied to the Federal Court to ask for an order extending the time it has to decide whether to disclaim leases as demanded by some landlords who have served notices demanding an answer within 28 days.

About 10,000 growers invested $800 million in 100,000 hectares of blue gum plantations. Timbercorp's forestry assets include 38,800 hectares of freehold land, leasehold interest in 58,600 hectares, and a 50 per cent share in the Albany woodchip terminal.

The rent to cover the plantation leases - an annual cost of more than $27 million - fell due on July 1, and many growers have stopped paying rent. Some farmers who have leased the land are angry and argue they have a claim on the trees.

KordaMentha won an order from the Federal Court earlier this month that gave them more breathing space to find a commercial outcome for the growers. However, some landowners have issued notices on the liquidator to give them 28 days to disclaim the leases or pay the rent.

KordaMentha will now go again before Justice Ray Finkelstein in the Federal Court next week in a bid to extend the 28-day period until September 30. The aim is to gain more time recapitalise or sell the assets.

In the interim, investors will debate the future of the forestry schemes at the meeting in Melbourne on Friday, August 7. The meeting will set out the liquidator's strategy to either purchase or recapitalise the schemes through a competitive sale or recapitalisation process.

Liquidator Mark Korda said there was already strong interest from many parties in the Timbercorp forestry assets.