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Gum in the works over Environvest financing

24 October 2008 3:17PM
Bendigo and Adelaide Bank is seeking to resolve a tussle with Commonwealth Bank over which of the banks holds priority in security over the eucalyptus plantations of Environvest, an insolvent promoter of tax-effective investment schemes.The Herald Sun reported that Environvest owed $46 million to CBA while investors in a series of schemes, marketed under the "Primary Yield" label owed $33 million to Bendigo. The latter's involvement occurred through the "portfolio funding" business of Adelaide Bank.CBA appears to hold security over the land owned by the schemes managed by Environvest while Bendigo holds security over the trees, according to the Herald Sun. The tree schemes are between two and 10 years old according to court documents published at the KordaMentha website.PPB are administors of Environvest appointed by directors on 19 September while while CBA appointed KordaMetha as receivers and managers to the company three days later.KordaMentha are now seeking winding up orders for the tree schemes in the Supreme Court of Victoria.Some of the trees are growing more slowly than expected and there is a shortage of funds to spray weeds and take other remedial measures ahead of the summer fire season.

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