This bulletin to Continuum Financial Planners clients who have participated in FEA Plantation projects for the years 2003 through 2009 deals with two issues only: firstly, the issue of invoices from BRI Ferrier (for payment on a voluntary basis); and secondly, the letter from DC Legal and their ‘client’ Grace Sinclair.
BRI Ferrier issued invoices dated around 10 November, seeking funds to pay the outstanding – and currently due – rent; plantation maintenance; scheme ‘operations’; and insurance costs. The reasons for issuing these invoices; and how the collections were to be processed, were outlined in the Circular to Growers that accompanied the invoices.
Since those invoices were issued, there have been a number of actions that have resulted in BRI Ferrier now being able to operate the Holding position for these projects with a lesser amount of money in hand. (Some more detail about those matters that have resulted in this position should issue to you in a further circular to you from BRI Ferrier in the near future.)
New invoices – again for voluntary payment – will be issued within the week. They will be accompanied by information from BRI Ferrier; and supported by a letter from the FEA Growers Group (the FEAGG).
In relation to the DC Legal letter and the one from Grace Sinclair, there are again some material omissions of factual information that cause us concern as to their motive. The complete reliance on the words of the Receiver without any recognition of a contrary view by both the Administrator and the ‘Proponent 1’ commercial contender for the take-over of the projects, is disturbing – and leads us to question their motive and intent.
We are not able to advise clients as to any course of action they should take in respect of the DC Legal approach, but suggest that you consider all of the facts available before signing up with any legal action that could have either or both of the following outcomes:-
- A significant legal cost to yourself (with little potential gain over other actions); and/
or
- Frustration and hindrance to the cause of preserving the plantations for the best possible outcome from a restructure process.
We anticipate that a more detailed offer will be forthcoming from Proponent 1 prior to Christmas. The information that was presented at the meeting called to review the present status of the ‘offer’ suggests to us that the proposal will be acceptable to most of our clients. The position in relation to those of us who pay the soon-to-issue BRI Ferrier invoices was also clarified: the proposal will allow for full recognition of the contribution made by Growers to the expenses of the plantations that would otherwise have to be made – with offset by way of issue of additional units in the restructured entity.
If there are any other concerns that you would like to discuss in relation to these matters, please contact Eric or Warwick who will try to deal with those matters promptly.
