River City Grain begins trading after similar companies collapse under Sapphire (SA)

THE trader behind the collapse of a Murray Bridge grain business is back trading grain under a similar name.

THE trader behind the collapse of a Murray Bridge grain business is back trading grain under a similar name.

Angry farmers owed money say Brenton Jeffrey Strauss has begun buying grain just weeks after the collapse of his company Sapphire (SA) Pty Ltd with losses of $13 million.

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Sapphire (SA) was trading as in four states as either Rivercity Grain Co or River City Grain Co.

According to Australian Securities and Investment Commission documents, Mr Strauss placed Sapphire (SA) in administration on March 14.

But ASIC documents show that on March 5, a company called Whites Hill (SA) was registered by an associate of Mr Strauss, Peter Edwards Jacobs, of Murray Bridge, who was its sole director and sole owner.

On March 6, Whites Hill (SA) registered the business name River City Grain, (removing the “Co” from the name) which has since been trading in grain.

Under questioning by creditors at a meeting on March 25, Mr Strauss said he was employed by Whites Hill (SA).

White Hills (SA) trades from the same premises as Sapphire (SA), according to an April 9 report by administrator Anthony Matthews, of Anthony Matthews & Associates.

He told the March 25 meeting that Sapphire had total liabilities of $13 million and debtors of about $2.8 million.

A list of creditors supplied for the meeting showed National Australia Bank Limited was the largest creditor, owed $5.2 million. The bank was a secured creditor.

Mr Matthews’ report shows unsecured creditors were owed about $7.3 million.

“Based on my initial investigations, it would appear that the company may have traded whilst insolvent from 30 September 2011,” the report said.

But he recommended against pursuing action for damages against Mr Strauss.

Western District creditor Wayne Heywood is among farmers and trucking firms angry that Mr Strauss is trading again. “The money’s got to be somewhere,” he said.

Mr Strauss has proposed a deed of company arrangement to trade out of the financial mess, with preferred creditors receiving 100c in the dollar and unsecured creditors getting two payments of 10c in the dollar by October 31, 2014, and October 31, 2015.