ABOUT six creditors entangled in Carpenter International's failed China deal are expected to challenge the company's administrator in the Supreme Court of Victoria over stock ownership.
The receiver for the live export company, Matthew Donnelly, from accountancy firm Grant Thornton Australia (GTA), said the administrator had returned to the Supreme Court of Victoria to declare who owns more than 4000 head of cattle that remain in ownership limbo.
In April, GTA ordered Brian O'Halloran & Co, Warrnambool, J&J Kelly Stock Agency, Warrnambool, and Wellington Livestock, Sale, to return 1300 head of dairy heifers -- worth more than $2 million -- after they were removed from quarantine at GG Feedlot in the Wimmera, shortly after the company went into receivership in March.
Wellington Livestock has since purchased the cattle, which they claimed-back from the feedlot, however Mr Donnelly said details of their mediation remains confidential.
He said negotiations with Warrnambool-agencies Brian O'Halloran & Co and J&J Kelly Stock Agency remains unresolved as parties cannot come to a resolution. The case will return to the Supreme Court of Victoria next Friday.
"With our consent, we are moving through a process to realise those cattle," he said.
"I can't reveal specifications because they are subject to negotiations so I have to be quite circumspect there but I understand advertising (of cattle for sale) has taken place."
Some creditors continue to argue ownership of the cattle on the grounds they were not paid for due to del credere (on trust) contracts, nor their National Livestock Insurance Identification System (NLIS) tags transferred on the Meat & Livestock Australia database.
GTA have again applied for Supreme Court intervention to clarify ownership of the remaining 4000 head held at GG Feedlot, with the first hearing to be held on June 26.
"We are not suing anyone per se, we are going through the court for (stock ownership) declaration," Mr Donnelly said.
"The last piece of the puzzle is the feedlot cattle -- that is subject to a separate Supreme Court proceeding that has been commenced by the administrator and the flavour of (those grounds), the administrator believes, we own the cattle and are asking the court to make a declaration."
Mr Donnelly said resolving the case through the court was "a transparent way and efficient way to deal with all the arguments".
He anticipates six creditors will participate in the hearings, arguing stock ownership was not legally transferred to the live export company.
Meanwhile, creditor and elected sale agents Dairy Livestock Services has completed the sale of 3500 on agistment across the state, including Tasmania, South Australia and southern NSW.
Sale of stock was completed in 16 to 200 head parcels, with the largest sale being 800 head.
"Those cattle met market expectations," Mr Donnelly said of the sale price.
"I hit valuation for all of the herd -- I chose expectation based on the valuation I received which was in line with market price."
While Mr Donnelly rejected claims there were major issues relating to the sale contracts in terms of when ownership of the cattle was transferred from agent to export company, he said the court intervention would clarify ownership questions.
"The fact is, there are two issues here -- people who took the cattle when they had no right to deal with them, whether they own them or not and the second is whoever the beneficial owners of the cattle are, we believe the company is but accept there are arguments."
