Vic: Elliott company falls into receivership
MELBOURNE, Aug 14 AAP - Rice producer Australian Rice Holdings Pty Ltd, part-ownedby high-profile businessman John Elliott, was placed in receivership today.
Deloitte Touche Tohmatsu said it was appointed receiver due to cash flow problems at the company.
"It was badly affected by world rice prices, drought and also the current difficultbusiness climate," said Andrew Beck of Deloitte.
Mr Beck said he did not know yet what value the assets of Australian Rice Holdingswould fetch on the market.
Former Liberal Party president and Elders IXL boss, Mr Elliott originally registeredAustralian Rice Holdings in August 1997 in partnership with US investor Roy Disney, anephew of Walt Disney, through his private company Shamrock.
Australian Rice Holdings became the largest shareholder in grain miller and stock feedgroup Water Wheel Holdings, which they hoped would rise to the top of the local rice growingindustry.
But problems emerged with both Australian Rice Holdings and Water Wheel and the partnershipbetween Mr Elliott and Shamrock dissolved.
Earlier this year Shamrock went to court seeking $500,000 in disputed payments by AustralianRice Holdings to Mr Elliott.
Mr Beck stressed the placing of Australian Rice Holdings in receivership had no connectionto problems at Water Wheel Holdings.
The securities watchdog, the Australian Securities and Investments Commission (ASIC),sued Mr Elliott as a director of Water Wheel Holdings in November 2000.
The Carlton Football Club president was accused of breaching Corporations Law by allowingthe company to trade while insolvent.
Mr Elliott has since applied to the Federal Court to stop ASIC from taking furtheraction against him.
ASIC has alleged Mr Elliott and two other former directors of Water Wheel, BernardPlymin and William Harrison, allowed the company to trade while it was insolvent.
Mr Elliott has lodged papers in the Federal Court seeking a permanent stay on the action.
The matter is expected to be heard tomorrow.
The application asks that ASIC be prohibited from taking any further action against Mr Elliott.
The Supreme Court trial is due to begin in the Victorian Supreme Court on Monday.
Earlier this month Supreme Court judge Justice Philip Mandie rejected an attempt todelay the trial until November.
AAP nc/gr/jlw/mo/mg/sb
KEYWORD: ELLIOTT NIGHTLEAD
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