A1 Tree Services: Court orders access to trust property to enable sale of $1.1m indebted business

The Federal Court has ordered that a company liquidator be granted access to trust property in order to facilitate the urgent sale of a major Tasmanian vegetation management firm. Full details.

A1 Tree Services in action. Picture: A1 Tree Services.

The Federal Court of Australia has ordered that the company administrator liquidating the assets of a major Tasmanian arborist, which is in a $1.1m hole and losing up to $60,000 a month, be granted access to trust property to facilitate an urgent sale.

Sandy Bay’s Hamilton Calvert Advisory was appointed administrator of Greenleaf (Tas) Pty Ltd, which operated vegetation management business A1 Tree Services, on August 24 this year, according to a recent decision of Justice Timothy McEvoy.

On September 28, a decision was made to liquidate the company’s assets to enable its sale as a going concern to long-term employee Peter Mason, the stepbrother of company founder and former co-owner Leigh Winwood, for $600,000 plus the payment of accrued employee entitlements.

Mr Winwood exited A1 following his separation from Sandra Winwood, Justice McEvoy said. Ms Winwood has been the director, secretary and sole shareholder of Greenleaf since last October.

Sandra Winwood, the director and sole shareholder of Greenleaf (Tas) Pty Ltd, which is in liquidation. The company formerly operated A1 Tree Services. Picture: Facebook

A business sale agreement was executed on October 19 this year but it was conditional upon Hamilton Calvert Advisory “being appointed receivers and managers of the business assets”.

As A1s business assets were held by the Winwood Family Trust, and not Greenleaf, which acted as trustee, Hamilton Calvert Advisory required a court order to be able to sell them to Mr Mason.

Hamilton Calvert Advisory argued the sale needed to be effected as a matter of urgency, as Greenleaf was indebted to the tune of $1,167,225 and losing up to $60,000 a month.

“The plaintiffs believe that neither Leigh nor Sandra have sufficient knowledge, skills or capacity to manage Greenleaf’s operations,” Justice McEvoy said.

Leigh Winwood, who exited A1 Tree Services following his separation from wife Sandra Winwood. Picture: A1 Tree Services

“Consequently, the plaintiffs believe that the sale of the business to [Mr Mason] needs to be finalised as expeditiously as possible.

Hamilton Calvert Advisory argued that the swift sale of the business would “maximise” the return to Greenleaf’s creditors.

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Justice McEvoy granted the application.

Kiara Calvert, Greenleaf’s joint liquidator alongside Barry Hamilton, told the Mercury ownership and management of A1 Tree Services had now transferred to Mr Mason and his newly incorporated company A1 Tree Specialists Pty Ltd.

Ms Calvert said settlement occurred on Wednesday.

A1, which is based near Devonport and provides services across the state’s North and North-West, was founded in 2009.

According to its website, it is “one of Tasmania’s leading vegetation management and arboriculture professionals”.

Originally published as A1 Tree Services: Court orders access to trust property to enable sale of $1.1m indebted business