Sapphire liquidator to take bankruptcy action against SA grain trader Brenton Strauss
Bankruptcy action is expected to be taken against South Australian grain trader Brenton Strauss within days, more than six years after his company Sapphire (SA) collapsed. Here’s how the long saga is beginning to unravel.
BANKRUPTCY proceedings are expected to begin this week against South Australian grain trader Brenton Strauss, 6½ years after his company Sapphire (SA) collapsed.
Liquidator Tony Matthews, of Adelaide insolvency firm Anthony Matthews & Associates, has told creditors he was preparing a bankruptcy notice on Mr Strauss for about $129,000 after the grain trader failed to pay $100,000 due by March and another $29,000 by the end of August under two consent judgments in the Supreme Court of South Australia.
Mr Matthews had issued bankruptcy proceedings against Mr Strauss for about $56,000 last year but nearly more than a year later, $29,000 was still owing.
Another judgment in May last year against Mr Strauss and his company Whites Hill (SA) Pty Ltd for uncommercial transactions resulted in a settlement of $100,000 to be paid in six instalments up to March 31 this year but the liquidator did not receive any funds.
Grain trader Sapphire (SA), which traded as River City Grain Co, collapsed in March, 2014, owing creditors about $13 million.
It began a long battle for recovery of funds from a number of Strauss companies, including some associated with the Nhill Bulk Handling site in the West Wimmera.
In recent weeks, Mr Strauss has advertised the sale of grain handling and testing equipment at his Nhill Bulk Handling site.
But it is not clear whether the South Australian grain trader is selling the site’s property, owned by one of his companies, Crazy Lace (SA) Pty Ltd.
Crazy Lace was guarantor for a $1 million Deed of Company Arrangement to settle the Sapphire insolvency, but the deal fell through, prompting Mr Matthews to begin wind-up action against the company in February, 2016.
Mr Strauss settled the legal action against Crazy Lace for $50,000, allowing him to continue operating the Nhill Bulk Handling site for the past few years.
About two weeks ago, he advertised for sale an extensive list of grain handling and testing equipment for sale, including 3200 metres of bunker wall and bunker tarp straps with ratchet handles, indicating he planned to shut down the site.
Sapphire creditor Stuart Ellis said a lot of Sapphire creditors would be annoyed about Mr Strauss profiting from the sale of the Nhill Bulk Handling operation.
“Creditors have been robbed left, right and centre on this (Sapphire insolvency),” he said.
Mr Matthews told The Weekly Times about $10 million was still owed to Sapphire creditors.
Mr Strauss did not respond to The Weekly Times.
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