Sandalwood company collapses

Quintis has large sandalwood plantations located in the Katherine area.

The Perth-controlled company owns sprawling plantations and nurseries across more than 2550 hectares in Katherine in the NT.

Quintis has a large office on the Victoria Highway.

Last year share advisers drew parallels with the managed investment schemes relied on by the sandalwood group to those also involved in the financial disasters of  the Great Southern and Timbercorp plantations a decade ago.

Quintis is listed on the Australian Securities Exchange and owns and manages more than 12,000 hectares of Indian sandalwood plantations across northern Australia.

Quintis, formerly the TFS Corporation, is the world’s largest producer of sustainable Indian Sandalwood, which had a listed market capitalisation of about $600 million.

In a statement issued yesterday, Quintis said institutional plantation investor Asia Pacific InvestmentsDAC exercised an option requiring Quintis to acquire 400 hectares of plantations for $37 million but Quintis said it did not have the money to pay.

Shares in Quintis have not traded since May.

The business has 200 employees.

Richard Tucker, Scott Langdon and John Bumbak of KordaMentha have been appointed as voluntary administrators of Quintis.

Black Rock is Quintis' major creditor. 

It is expected that McGrathNicol will be appointed as receivers and managers of Quintis' secured assets.

“We are very disappointed with this outcome given the huge efforts made over the last nine months to recapitalise the Company in order to deliver its sustainable future," said Quintis chairman Dalton Gooding.

In light of the recent announcement from Quintis to enter voluntary administration, the Northern Territory Government today said it would review their status under the Major Project Status policy.

Major Project Status may be reviewed by the NT Government in certain circumstances, including the project proponent entering into receivership, administration or liquidation. Voluntary administration will enable the resolution of the financial issues of Quintis, resulting in either the recapitalisation of the company or its winding up and sale.

In relation to the groundwater extraction licences associated with Quintis, where properties are transferred - be it through liquidation of a company, a sale or any other means - licences are deemed to transfer to that entity under the provisions of the Northern Territory Water Act.

 Any operational changes including staffing will be a key decision for administrators and receivers and the department will work with relevant parties to minimise any impact on jobs.

- with Sydney Morning Herald.