GrainLink NSW owed more than $47 million before collapse

GrainLink NSW was in debt by millions of dollars before entering voluntary administration. See how much each creditor is owed.

A group of NSW grain trading companies owed money to banks, producers and employees when it entered voluntary administration in June. Photographer: David Gray/Bloomberg via Getty Images

A group of NSW grain trading and handling companies owed more than $47 million to creditors before entering voluntary administration this month.

Five related companies, all run by directors Paul Pearsall and Dean Salvestro, were placed into voluntary administration on June 1: GrainLink (NSW) Pty Ltd, GrainLink Storage Pty Ltd, GrainLink Resources Pty Ltd, Walsh Link Pty Ltd and Western Riverina Intermodal Freight Terminal Pty Ltd.

The companies marketed, traded, stored and transported grain throughout eastern Australia from their base in the Riverina.

All stock movements have been suspended while administrators conduct a review of the businesses.

Documents filed to the Australian Securities and Investments Commission on Friday show GrainLink NSW owed $46 million to the National Australia Bank and Commonwealth Bank of Australia before administrators were appointed.

The company, based at Griffith in NSW, also owed a combined $1.19 million to two cotton producers and $150,000 to other entities.

Documents reveal GrainLink Storage owed $260,000 to 38 businesses involved mainly in agriculture and mechanical services, while GrainLink Resources owed $29,500 in entitlements and superannuation to its employees and $58,000 in workers insurance.

Filings show Murami Farming Co Pty Ltd, run by GrainLink NSW co-director Paul Pearsall, received a $3.5 million loan from GrainLink NSW before the company entered voluntary administration.

The GrainLink company group lists several million dollars worth of assets, including a property worth $4.2 million at Coleambally and a property worth $1.3 million at the Western Riverina Intermodal Freight Terminal site outside of Griffith, both subject to finance.

Related company Australian GrainLink, run by director Dean Salvestro, is still operating.