Lempriere Grain to move into administration

UPDATE: INSOLVENCY specialist Jirsch Sutherland has been appointed as administrator of failed grain trader Lempriere Grain.

Grain trader: Farmers and grain traders are reporting slow payments by Lempriere Grain.

UPDATE: INSOLVENCY specialist Jirsch Sutherland has been appointed as administrator of failed grain trader Lempriere Grain.

Andrew Spring and Trent Devine, of Jirsch Sutherland’s Melbourne office, were appointed as joint administrators yesterday.

One of their tasks will be to recommend to creditors a course of action, such as allowing it to trade out of its difficulties or winding it up.

Growers and other traders had become concerned during the past week about slowness in payments for grain contracted to the Melbourne-based company.

Some were told by the company yesterday it would be placed in administration.

Lempriere Grain pulled down its website a few days ago and growers reported the company was not answering phone calls.

It comes as Lempriere Capital distanced itself from the grain trader, after receiving negative feedback from the industry.

Lempriere Grain uses the Lempriere name under a licence agreement.

According to Australian Securities and Investments Commission documents, Lempriere Grain is half owned by Singapore company Starcom Resources Pte Ltd, with the other 50 per cent stake held by two companies owned by Toorak businessman, William Lempriere, of the well-known Lempriere wool trading family.

Mr Lempriere had been a director of Lempriere Grain since its inception in 2003 until he resigned in January last year.

The other directors are Jon Holdsworth and Singapore-based Ajay Aggarwal.

Mr Aggarwal is the founder and managing director of Starcom Group, parent company of Starcom Resources.

Starcom Resources was an international commodity trader regarded as the flagship company of the Starcom Group.

The Starcom Group traded in grain and nuts and had offices in India, Ukraine, Australia and South America.

Starcom Resources’ website has also recently been pulled down.

Lempriere Grain had an office in Ballarat involved in buying grain.

Mr Holdsworth works as an executive of the company.

In a statement to The Weekly Times, Lempriere Capital said neither it nor company principal William Lempriere had “any operational involvement whatsoever in Lempriere Grain”.

“The directors of Lempriere Grain have been sent a notice of revocation of the licence agreement,” the statement said.

According to Grain Trade Australia’s website, Lempriere Grain traded between 250,000 tonnes and 500,000 tonnes of grain annually.

One grower had been told by the grain trader it was expecting a cash injection within months by a third party.

The Weekly Times has been unable to contact Mr Holdsworth or Lempriere Grain.