WELLINGTON - The trustee of a superannuation fund set up by troubled Apple Fields expects it will soon recover all of investors' money after years of trying.
Meanwhile, the Stock Exchange says the Christchurch orchardist turned property developer has failed to meet listing requirements to report annual results for the year ending September within 75 days of balance date.
Tower Trust is trustee for Rural Super Bonds Superannuation Scheme (RSB), set up to buy orchards and dairy properties.
At its height, the fund held $48 million belonging to 1300 mostly retired investors.
Tower Trust managing director Jim Minto said Tower closed the fund to further investment when it saw an increasing risk of investors not getting their money back.
It then began winding up the fund.
The investment in Dairy Brands was sold and receivership was invoked over eight remaining properties.
Apple Fields properties were used as security for RSB.
Payments brought the money at risk down to $28 million at windup, and the trustee forced the sale of properties to recoup it.
"We've paid back 75c in the dollar of that," said Mr Minto.
Two properties were left to be sold.
"Based on the current valuations and expectations, if we achieve those we'll be able to pay everybody all their money back."
Mr Minto said sales to date had realised about $20 million and were at or above valuation - against some predictions.
About $7 million remained to be recouped.
He said Apple Fields' failure to meet its reporting deadline would have no impact on RSB investors.
Working with a five-day grace period, Apple Fields has until tomorrow before quotation of its securities is suspended.
A source close to the company said it would report a loss and property writedowns, but debt was down to under $2 million after the sale of $40 million worth of property.
Mr Minto said some of that would be the sales forced by Tower.
Apple Fields last year made a total loss of $9.7 million and had borrowings of $40 million.
Mr Minto agreed the number one question was what kind of shape Apple Fields had been left in by the sales.
He had some information but was not entirely sure of Apple Fields' status. Legal restraints prevented him talking.
Apple Fields itself said its failure to report was related to office workload, not business matters.
Managing director Tom Kain said nothing should be inferred.
Apple Fields had had financial problems in the past, but solid progress had been made of late.
The company would report today or tomorrow, he said. It was awaiting a valuation on a property.
"There's no problem. It's just a matter of getting the work done."
Staff had been cut from 120 two years ago to six.
"We're a few days late, that's all. And there's leeway given [by the Stock Exchange], and we're going to be comfortably within that."
Involvement of receivers had added to Apple Fields' reporting workload, said Mr Kain.
"We basically miscalculated the amount of work involved."
On the lateness question, Mr Minto said: "What our company stands for is compliance and enforcing shareholders' rights, so as a general principle we are always concerned that people meet their obligations."
Recovering investors' money had been a challenging task, involving litigation.
It had not been easy, because on the one hand the RSB trustee had been trying to protect investors while Apple Fields had been trying to run its business, paying back in its own timeframe.
"We forced the timeframe, and we've been utterly vindicated in that." - NZPA
Apple Fields fund trustee tips full payback
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