Receivers of the embattled sandalwood company Quintis announced yesterday the company had been recapitalised.
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McGrathNicol, who was appointed receiver of the Quintis Group in January, announced yesterday the recapitalisation of Quintis had been successfully completed and their appointment as receivers had ended.
According to McGrathNicol, the recapitalisation has achieved:
- a substantial capital injection into Quintis and the renegotiation of existing debt facilities on favourable terms such that Quintis emerges from insolvency in a very strong financial position.
- the continued employment of over 200 Quintis staff, most of them based in regional Australia.
- the protection of approximately 3,600 retail growers who have invested in Quintis’ managed investment schemes (MIS). Under the recapitalisation MIS growers retain all of the benefits of their original investment including the ability to defer lease and management costs, which will be funded by the recapitalised Quintis.
- the vast majority of sophisticated investors retaining Quintis as plantation manager in recognition that those growers benefit from Quintis’ unmatched forestry expertise and the strength of its market position.
McGrathNicol Partner, Jason Preston, said: “We are delighted to have reached a positive outcome for stakeholders in such a complex receivership.
“The majority of jobs have been protected and the recapitalisation ensures all plantations owned by Quintis will continue to be maintained to the company’s high forestry standards.”
American investment company BlackRock has emerged as the majority owner of the new company.
The company owns sprawling plantations and nurseries across more than 2550 hectares in the Katherine region with an office located on the Victoria Highway in the town.
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