Timber waste recycling hopeful goes bust, Mitsui appoints receivers

afr.com:

An Australian timber wastes recycling business which had begun exporting wood pellets across the globe has tumbled into administration, with Japanese powerhouse Mitsui then appointing receivers.

Altus Renewables had turned pine sawdust into pellets, labelling the product as a complementary source of high-energy fuel for power stations.

But regulatory filings show Altus, based in Loganholme in southeast Queensland, appointed administrators from McGrathNicol last Friday. Mitsui on Tuesday then dispatched FTI Consulting as receivers.

Altus Renewables uses forestry waste to make wooden pellets that can be burnt to create power. Louie Douvis

Mitsui, which had an offtake agreement with Altus, had lent $14.5 million to the company as of June last year, according to the failed company’s latest accounts. Export Finance Australia, the federal agency, had also lent $2.1 million and National Australia Bank had a lease facility tapped for $118,000.

Altus had further issued convertible notes worth $5 million in September last year, and had total liabilities of $27.6 million.

FTI on Wednesday said the receivers, Ben Campbell and John Park, were now in “control of the business, operations and assets” of Altus and a subsidiary. This included its Tuan biomass wood-pellet manufacturing plant near Maryborough in Queensland and a “Green Triangle Project” near Mount Gambier in South Australia.

“The receivers intend to continue trading the Tuan plant on a business-as-usual basis whilst they undertake an urgent assessment of the companies’ financial position, and explore options for a sale of business and assets, and/or recapitalisation of the companies,” FTI said.

Matthew Caddy, Robert Smith and Jamie Harris were appointed from McGrathNicol