THE legal stoush between agents embroiled in Carpenter International's failed China live export deal and the company's appointed administrator has escalated as the sides enter mediation over the ownership of the livestock.
Three agents, Brian O'Halloran & Co, Warrnambool, J&J Kelly Stock Agency Pty Ltd, Warrnambool, and Wellington Livestock, Sale, removed 1080 head of dairy heifers – worth an estimated $2 million at the export value of $1850 a head – from quarantine at GG Feedlot in the Wimmera earlier this month.
The current location of the heifers has not been disclosed.
The fallout from the deal affects 358 farmers who dealt through 25 livestock agents to fill the order for the live export shipment.
Agents claim they own the cattle, having not being paid by the live export subsidiary of WA's Carpenter Beef after it was put into administration last month.
The receiver for the live export company, Grant Thornton Australia (GTA), wants to claim ownership and damages for the cattle that were removed by the agents from the feedlot without GTA's permission and has turned to the Supreme Court of Victoria to intervene.
Carpenter International has liabilities of up to $20m after the failure of a Chinese sales contract.
The target of the writ, which was lodged mid-April, is the three agents (deemed "significant creditors") who took the 1080 head of quarantined stock appropriate for export.
GTA's appointed administrator Matt Donnelly said there was a complex set of arrangements about who owned what cattle.
"We think we have communicated strongly and believe the removal of the cattle was inappropriate but understand there is contention with title of the cattle," Mr Donnelly said.
"We believe the title of the cattle rests with the company."
However, a delay in resolving last week's court order, which entered mediation on Monday, was due to the "complex matter" of ownership.
"Hypothetically I can conclude who owns the cattle but then there is a question of damages and that question takes time to work through," Mr Donnelly said.
On March 26 – the second day of administration – a further three agents removed fewer than 200 stock from the feedlot under an insurance claim.
There are currently 6900 Friesian and Angus heifers held in quarantine at GG Feedlot and 4100 head on agistment in western Victoria, with a small portion in NSW, Tasmania and Western Australia that will be offered for domestic sale.
Mediation will conclude next Monday.
If the administrator and agents do not agree on an outcome, the case will return to court on May 18 to determine the matter.
