Grain company woes continue

Creditors will look to a meeting next week to learn about the fate of failed grain company Sapphire (SA) Ltd, formerly River City Grain Co, which has been in liquidation since 2016.

Grain industry leaders have labelled a South Australian grain company’s drawn-out $13 million debt spree as ludicrous.

Sapphire (SA) Pty Ltd, which formerly traded as River City Grain Co and Ag Commodity Trading (Australia), has been in liquidation since 2016.

Australian Securities and Investments Commission has published details of a meeting of creditors that will be held on July 24, and many creditors are still none the wiser about any potential payments or money owed.

The meeting next Wednesday includes agenda items such as receiving a report from the external administrator and to determine the future remuneration of the administration.

Mark Schilling of Cunliffe, South Australia, said the drawn-out nature of the failed grain company was appalling, and creditors were constantly losing any equity they may be entitled to.

“Why has it taken so long when we are such a regulated industry,” he said.

“We are now eight years on.”

Australian Securities and Investments Commission took action against the grain trader.

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

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.

Rupanyup farmer and Grain Producers Australia southern director Andrew Weidemann said the long-running administration and trail of debt was an example of why it was necessary for the shorter payment plans for grain trading companies.

He said after the demise of the single desk selling system for wheat there had been multiple grain trading companies fail and leave debts with farmers.

“Farmers are putting their money up to grow a crop and pay the input costs,” he said.

“We need grain traders to do the same thing,” he said.

The Weekly Times has contacted administrator Anthony Matthews for comment.