Troubled Perth company Quintis plans to take legal action against its founder and former managing director over claims he has failed to meet repayment obligations on an $11 million loan.
Troubled Perth company Quintis plans to take legal action against its founder and former managing director over claims he has failed to meet repayment obligations on an $11 million loan.
The Indian sandalwood producer said Frank Wilson was one of two investors who owed loan repayments to its finance subsidiary, Arwon Finance, and were in default of their repayment obligations.
Mr Wilson allegedly owes $11.1 million to Arwon. Quintis didn’t disclose who the other investor was or how much they owed.
In response, Mr Wilson said he rejected the allegation that he was in breach of the loan agreement, and would defend the matter if legal action was taken.
“The enforcement action foreshadowed by the company and Arwon is unnecessary, given I was in discussions in good faith to resolve any dispute over this matter,” he said.
Mr Wilson said Quintis held sandalwood plantations that were under his ownership over the loan as security that “the company has valued at far in excess of the loan amount”.
He said it was disappointing that Quintis had chosen to consider the action, and that he would vigorously defend it.
Quintis also announced changes to terms of a plantation put option with Asia Pacific Investments, for the sale of 400 hectares of plantations to the company.
The window of time for the option to be exercised by API has been extended to between July 24 and July 26, with Quntis to pay for the plantations three days early, on July 28.
Mr Wilson left Quintis in March, in the wake of an extraordinary attack on the business by short-seller Glaucus, to pursue a possible takeover deal with the company.
Goldman Sachs, Clayton Utz and Cannings Purple have been advising Mr Wilson, with UBS advising Quintis.
Quintis shares remain suspended.
