Another managed investment scheme company has gone into voluntary administration, following the well trodden path laid out by Great Southern and Timbercorp.
This time it's Tasmanian company Forest Enterprises Australia, which has MIS projects in Tasmania, NSW, Queensland and the Northern Territory.
FEA has blamed its bankers, the Commonwealth Bank and the ANZ, for putting it a position where voluntary administration was the only way out.
The MIS company says it had been trying to work out its problems by selling land, cutting costs and reducing debt, but the banks didn't give it enough time.
BRI Ferrier has been appointed voluntary administrator.
Agribusiness Elders says it's lost $100 million through its investment in Forest Enterprises Australia.
After FEA announced its voluntary administration yesterday, Elders told the sharemarket its share of FEA was worthless.
Elders' chief executive Malcolm Jackman says it wasn't a great investment.
"This will have no real impact on the business at all," he says.
"I think the investment community has factored in to their models of us that this was an investment that was unlikely to be returning and serious return in the future."Forest Enterprises Australia, Bell Bay, Tasmania.
The company is the latest managed investment scheme to go into administration.
You should be careful using the term 'scam', especially if you have not looked into the company or the Australian rural workers and contractors who are now out of a livlihood. Do your research and due diligence before using quick and easy terms - be a 'journalist' in what used to traditionally not be a derogatory term.
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