Failed grain company Sapphire (SA) makes payouts to some creditors

ALMOST $600,000 has been paid out to some creditors of failed grain company Sapphire (SA) Pty Ltd.

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ALMOST $600,000 has been paid to some creditors of failed grain company Sapphire (SA) Pty Ltd. But others are still waiting for their promised 10c in the dollar.

Some of the 32 creditors paid out, according to documents seen by The Weekly Times, include grain company Cargill, two lawyers, nine transport companies and Southern Stockfeeds, which is part-owned by Murray Goulburn chairman Phil Tracy.

Sapphire (SA), which is owned and managed by Brenton Strauss, was placed into external administration in March last year owing about $13 million.

At the last creditors’ meeting on June 11 it was revealed that a company called Larimar (SA) Pty Ltd, which is owned by the same company as Sapphire (SA), had made $586,491.73 in payments to some Sapphire (SA) creditors.

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Mr Strauss is the sole director of Larimar (SA), which is owned by Jade (SA) Pty Ltd. And Jade (SA) is the owner of Sapphire (SA).

In February Mr Strauss failed to pay creditors 10c in the dollar as agreed under a deed of company arrangement, which was in default following the missed payment.

Earlier this year, Mr Strauss tried to negotiate a new deed, claiming he was unable to raise an extra $380,000 required to pay National Australia Bank as an unsecured creditor at 10c in the dollar. In an April letter to creditors, Mr Strauss said he had “no intention of walking away from my commitments” and was “doing my very best to have the first dividend paid to you as soon as humanly possible”. According to information provided to the administrator of Sapphire (SA), Tony Matthews of Anthony Matthews and Associates, Larimar made seven payments to Cargill Australia totalling $61,060.79.

Southern Stockfeeds, which is jointly owned by Murray Goulburn chairman Mr Tracy, received $22,662.83 from Larimar, which was more than the $21,289.49 originally owed by Sapphire (SA). There was also a $36,103 payment to Nhill Bulk Handling, which is a company owned by Larimar. Mr Strauss, Mr Matthews and Southern Stockfeeds did not return calls.