Hillston grain business collapses, second time for main trader

The recent collapse of a NSW grain company may open up new lines of industry scrutiny. Here’s why.

The sole director of a Hillston grain trader that collapsed last week is likely to offer a deed of company arrangement to creditors in a bid to stave off liquidation.

Quiza Pty Ltd was placed into administration on May 3 with debts to creditors yet to be fully determined.

Australian Securities and Investments Commission documents show Quiza’s director was Sharon Fitzgerald, who owned 55 per cent of the company while her husband, John, held the other 45 per cent.

Mr Fitzgerald ran the company under the business name of Western Grain Rural.

That business name is held by Wundin Pty Ltd, of which Ms Fitzgerald is sole owner and director.

A spokesman for receivers David Mansfield and Robert Woods, of Deloitte Touche Tohmatsu, said and initial assessment of the DoCA indicated it would result in a significantly better return to creditors than liquidation.

Creditors will have their first opportunity to quiz the administrators at a creditors meeting to be held this Friday.

Quiza Pty Ltd, which traded in cottonseed and grain as Western Grain Rural, has been plunged into administration.

Western Grain Rural’s website shows Mr Fitzgerald was a domestic trader of wheat, barley, maize, cottonseed and pulses with 25 years’ experience.

It said he had branched into the export market and had built client relations for the export of cottonseed, cottonseed pellets and almond hulls into South Korea.

“Whether you are looking to buy, sell or export your grain, John can provide a reliable and competitive service,” the website said.

“As added security, Western Grain rural’s trading book is fully insured with National Credit Insurance, providing payment guarantee.”

Western Grain Rural ran a bulk transport and storage site at Hillston but a grain industry source said that was sold two years ago.

Mr Fitzgerald had previously owned another company, Western Grains (NSW) Pty Ltd, which was placed in receivership in September 2006, after being established only 16 months earlier.

It was wound up and deregistered in January 2012, along with two related companies, Western Grains Transport (NSW) Pty Ltd and Western Grains Fertilizer Pty Ltd.