Will Lempriere slams Aggarwal and Holdsworth over Lempriere Grain collapse
Former Lempriere Grain director Will Lempriere has blamed the collapse of the grain buyer on the other directors in a public examination in the Federal Court.
Former woolbroker Will Lempriere has tried to distance himself from the 2019 collapse of his half-owned grain buyer Lempriere Grain.
And he also accused the other directors — Ajay Aggarwal and Jonathan Holdsworth — of “trashing” his reputation over the company’s failure.
In a public examination in the Federal Court last week, Mr Lempriere said it only became apparent the grain trader was in financial trouble in January, 2018, when the previous year’s accounts sent to him showed no income but millions of dollars in outgoings.
He said he resigned as a director within days of discovering the company’s parlous finances.
But Mr Lempriere could not say why he did not resign between 2010 and 2018, when the company reported losses in all but one year and net assets were continually in deficit.
Barrister Anthony Cheshire SC spent three days before the Federal Court in the past month questioning whether Lempriere Grain’s directors allowed the company to trade while insolvent.
Mr Cheshire suggested Lempriere Grain could not pay its debts if and when they fell due for a number of years.
Lempriere Grain is half owned by Mr Lempriere’s companies, Benwill Pty Ltd and Myaring Nominees Pty Ltd, with the other 50 per cent owned by Mr Aggarwal’s Singaporean firm, Starcom Resources Pte Ltd.
Mr Lempriere and Mr Aggarwal were directors from Lempriere Grain’s inception in 2003, while Mr Holdsworth was appointed in February, 2010.
From about 2014 onwards, it bought about $60 million to $72 million in grain annually.
Mr Lempriere told the court that, from 2010 to 2017, Lempriere Grain ran as the procurement arm for Starcom Resources, with the Singaporean company paying costs plus a margin for grain.
He understood Starcom Resources “enjoyed the support from its financiers” and would ensure Lempriere Grain had funds to pay grain growers in Australia.
Mr Lempriere said he had been kept in the dark by Mr Aggarwal and Mr Holdsworth about the grain buyer’s finances in 2017.
“I was in regular contact with Starcom through that period of time and no one at any point raised any concerns about the financial situation,” he said.
“I was concerned these people had trashed my reputation, a reputation my family had spent decades building up.
“These two people (Mr Aggarwal and Mr Holdsworth) in particular have done a wonderful job in destroying that reputation.”
Mr Holdsworth said he joined Lempriere Grain as commercial operations manager based in Sydney in 2010.
He worked for Starcom Resources from 2001 to 2003 before taking a job with another company in New Zealand for six years.
Mr Cheshire questioned Mr Holdsworth about whether creditors with outstanding payments dating beyond 90 days in the aged payables accounts in January, 2019, was evidence Lempriere Grain could not pay its debts if and when they fell due — an indicator of insolvency.
Mr Holdsworth said some grain suppliers wanting grain payments deferred beyond June 30 for taxation purposes.
He said he vaguely recalled the Rich Family Trust and the KJ & TF Ryan Family Trust as two suppliers sometimes wanting deferred terms.
“It was not unusual for Lempriere Grain to have extended payment terms which could be through to the following July,” he said.
But text messages to Mr Aggarwal on January 18, 2018, showed Mr Holdsworth was concerned the company was trading while insolvent and an insolvency lawyer suggested a “safe harbour” option to avoid their liability if the company failed.
“My understanding, which may be wrong, is that if we can no longer pay our debts when they fall due (and w have been able to but looks like we might not for much longer), then we are definitely trading insolvently which means we are failing in our responsibility as directors and could become personally liable,” Mr Holdsworth said.
“If, however, once we know we are trading insolvently and we go into voluntary receivership, we may not be personally liable.
“Just trying to prevent personal liability but I am no expert.”
Later that day, Mr Holdsworth sent another text to Mr Aggarwal after speaking to the insolvency lawyer about a ‘safe harbour against trading insolvency’.
“If we engage a ‘restructuring expert’ putting forward a restructuring plan that recapitalises LG, we can buy some time for your plans to potentially come to fruition and be temporarily safeguarded against liability for trading insolvently/continuing trading during that period,” he said.
Mr Holdsworth told the court Lempriere Grain was not put in administration earlier because Mr Aggarwal convinced him refinancing was imminent.
No more Federal Court examinations are scheduled to be heard on Lempriere Grain.
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