JUSTICE Heenan of the Supreme Court of Western Australia has agreed to make orders to wind up all of the managed investment schemes in the Palandri Wine Group.

Justice Heenan made orders, effective as of September 23, that independent insolvency practitioners Neil Cribb and Mark Conlan of RSM Bird Cameron, be appointed to take responsibility for winding up the Palandri Wine Group managed investment schemes in accordance with their constitutions and any other orders of the court.

Gary Doran representing administrators Deloitte said the winding up of the Palandri schemes was in the best interest of creditors.

“The winding up is a good outcome for creditors because it allows the administrators to complete the sale of the group’s vineyards and finalise their report to creditors,” Mr Doran said.

“The administrators are now focused on calling the second meeting of creditors wherein the creditors will decide the future of the companies within the group.

“It will also allow the creditors to consider a proposed Deed of Company Arrangement which was contingent on the winding up of the managed investment schemes.”

Mr Doran said this is a good outcome for investors in the schemes because it means they are no longer liable for the future outgoings of the schemes in respect of lease and management fees.

The second meeting of creditors will be convened for Tuesday, October 7, 2008.

The report to creditors will provide a summary of the financial affairs of the group, the reasons for its failure and the results of the Administrators’ initial investigations into the financial affairs of the companies within the group.

In addition, the report to creditors will include an analysis of the proposal for a Deed of Company Arrangement and an outline of the alternatives available to creditors, which includes placing the companies into liquidation.