Sapphire Grain creditors ‘lucky’ to see 1.5c on the dollar

Creditors owed an estimated $12.8 million could see just 1.5 cents on the dollar in the windup of a failed grain trader. See the latest.

Creditors owed an estimated $12.8 million could see just 1.5 cents on the dollar in the windup of a failed grain trader.

Sapphire (SA) Pty Ltd, which formerly traded as River City Grain Co and Ag Commodity Trading (Australia), has had debt woes dating back to 2016, with up to 180 creditors from throughout Victoria, South Australia and NSW.

Fewer than 10 people attended a Members of Committee of Inspection meeting on Wednesday morning.

Committee of creditors spokesperson and former Burrumbeet farmer Stuart Ellis was on the meeting and said he and other people owed money were furious and disappointed.

He personally lost $124,000, which at the time accounted for 89 per cent of his harvest income.

“I remember saying that I would have to live on baked beans because of the financial loss,” he said.

“I was taken to task for saying it ... but it shows just what cost this has had.”

Mr Ellis said the liquidation of Sapphire had not just cost farmers money but also caused mental anguish because of how drawn out it was.

A creditors meeting about the windup of Sapphire (SA) Pty Ltd was held on Wednesday morning.

He said initially, creditors were told they may receive 10c on the dollar. “We weren’t happy with that offer a the time either,” he said.

Now to be told the figure of 1.5c was just another blow that he said highlighted the toll a failed grain company could have on a farming community.

“It is a bloody insult.”

Mr Ellis said it raised more questions than it answered with creditors not actually knowing when they were likely to see any potential payment.

“This has been dragging on for years and is likely to continue,” he said.

“I am no longer farming.”

Mr Ellis said the committee of creditors did not approve a payment for fees to the liquidator at the meeting on Wednesday. The fee from liquidator Anthony Matthews and Associates of South Australia was $12,000.

The financial troubles were first raised in 2014 when Sapphire company director and secretary Brenton Strauss of Murray Bridge, SA appointed administrators.

Later on February 12, 2016, creditors voted that the company be placed into liquidation.

On October 5, 2018 Mr Strauss pleaded guilty to acting as an officer of a company while it was under external administration.

The charge, and guilty plea came after an ASIC investigation that found on March 19, 2014, Mr Strauss had issued a variation to a settlement deed between Sapphire and another company after the appointment of an administrator. At the time of issuing the variation to the settlement deed Mr Strauss was not authorised to make decisions affecting the affairs of Sapphire.