Another agribusiness manager bites the dust
Australian Bight Abalone (ABA) has entered voluntary administration, buckling under various pressures currently facing the agribusiness managed investment scheme sector.
The directors of the group pointed to the failure of Timbercorp and Great Southern, a general deterioration in business conditions and the withdrawal of financiers from the grower loan funding market as the decisive factors in the group’s entry into administration.
McGrath Nicol will be responsible for the administration of the group.
ABA independent chairman Tipene O’Regan said the board “does not have faith in the tax effective managed investment scheme model of fundraising going forward”.
The group’s investment inflows were down more than 75 per cent from last year and more than 85 per cent on expectations.
Tipene said while the group “could have drawn down on funds raised this year to continue operations”, the group did not believe it would be in the best interest of the investors.
The group will reimburse all 2009 application monies.
ABA is the largest employer in the township of Elliston in the Hunter Valley in NSW.
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