Quintis Ltd goes bust

Quintis Ltd (ASX: QIN), which once claimed the title of the “world’s largest owner and manager of commercial Indian sandalwood plantations”, has gone bust.

Last week Quintis Ltd announced that Asia Pacific Investments DAC exercised a put option requiring Quintis to buy 400 hectares of plantations for around $37 million.

But Quintis stated it didn’t have the funds and has gone into administration.

“The company does not have the financial resources available to it to pay the put option price and the directors have therefore resolved to appoint Richard Tucker, Scott Langdon and John Bumbak of KordaMentha as voluntary administrators of Quintis and its Australian subsidiaries,” Quintis stated.

“The company understands that the receivers will further evaluate restructuring and sale alternatives, including a potential recapitalisation of the business with noteholder support.”

In March last year a paper published by California-based short seller Glaucus Research Group scrutinised Quintis and the company’s share price started to dive.

After a disastrous financial year (FY) 2017, which saw Quintis shares suspended on the ASX since May, some thought the sandalwood company would follow  Slater & Gordon Limited (ASX: SGH) and Quintis’ plans to recapitalise would eventuate.

But such plans didn’t materialise, adding to Quintis chairman Dalton Gooding’s failed attempts to prevent the company collapsing.

“We are very disappointed with this outcome given the huge efforts made over the last nine months to recapitalise the Company in order to deliver its sustainable future,” Dalton Gooding said.

In FY 2017, Quintis reported a net loss after tax of $416.8 million, down from the $90.1 million after tax profit the company posted in FY 2016.

Quintis blamed a number of factors on the heavy loss, including a $307.4 million reduction in the value of Quintis’ assets and a year-on-year fall in revenue close to $95 million.

Quintis’ major creditor is American investment management company BlackRock, Inc. (NYSE: BLK), according to Fairfax Media Limited (ASX: FXJ).

Don’t Buy A SINGLE Stock Until You Read This

While conflict overseas is all media talking-heads seem to mention these days, the billionaire founder of Tesla is losing sleep over what he sees as a far bigger threat.

Elon Musk Warns: This has “vastly more risk than North Korea”

If you missed your opportunity to get in on Google, Microsoft, or Amazon in their early days, don't let it happen again. This emerging technology trend could offer a second chance for anyone who wishes they took part in these millionaire-maker stocks.

Click here to discover more!

Motley Fool contributor Steve Holland has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

Two New Stock Picks Every Month!

Not to alarm you, but you’re about to miss a very important event! Chief Investment Advisor Scott Phillips and his team at Motley Fool Share Advisor are about to reveal their latest official stock recommendation. The premium “buy alert” will be unveiled to members and you can be among the first to act on the tip.

Don’t let this opportunity pass you by – this is your chance to get in early!

Simply enter your email now to find out how you can get instant access.

By clicking this button, you agree to our Terms of Service and Privacy Policy. We will use your email address only to keep you informed about updates to our website and about other products and services we think might interest you. You can unsubscribe from Take Stock at anytime. Please refer to our Financial Services Guide (FSG) for more information.