Sapphire director Brenton Strauss plans to pay unsecured creditors

GRAIN trader Brenton Strauss says he will repay unsecured creditors of his failed company Sapphire (SA).

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SOUTH Australian grain trader Brenton Strauss says he will repay unsecured creditors of his failed company Sapphire (SA) Pty Ltd in full.

Mr Strauss told The Weekly Times the agreement struck with creditors in May through a Deed of Company Arrangement was for paying two disbursements of 10 cents in the dollar — one next February and the other in February 2016 — but he intended to repay full entitlements.

He could not put a time frame on when full repayment would be made to unsecured creditors.

Sapphire (SA) collapsed in March with debts of $13 million owed to a string of creditors including other Strauss companies, the National Australia Bank and about 200 others.

Mr Strauss said the net debt was about $7 million.

“I have issues with National Australia Bank which I am working through,” he said.

“I am working behind the scenes to earn money to repay creditors.”

Mr Strauss said he had found himself in “a terrible position”.

“I had a good reputation, But people now second guess me,” he said.

Every spare cent now goes into paying creditors.

“All I require is time. This has not been an enjoyable part of my life.

“I just want to pay people back.”

A number of Strauss companies had about $3.3 million in bad debts written off by Sapphire (SA) in 2013 and 2014.

They included $1.4 million owed by Moonstone (SA) Pty Ltd and $442,000 owed by Diamond (SA) Pty Ltd.

Diamond (SA) has about $190,000 in share capital in Laverton North grain packing business Grainpac.

A string of other Strauss companies owed Sapphire (SA) money, while some were also creditors of the failed company.

Some of them are Strauss superannuation funds and property trust companies.

Mr Strauss said it was common for company directors to have a string of companies to minimise income tax.

“Those (Strauss) companies today are paying the bills and paying the unsecured creditors,” he said.