Rocky River


Rocky River

Up close the world's all dirt and rocks.

- Ursula K Le Guin

The same company that provided the trust with Matauri Mara originally owned this Motueka forest: South Pacific Resources Commodity Traders Limited in Hokitika.  The Flat Rock Forests Trust March 93 prospectus said this forest was in six titles whose harvest was scheduled for 93, 01, and 02.  Thereafter, it had “lifestyle block potential.”  There were reportedly 140 ha of land (value $97,000) on which were growing 91 ha (or, later in the same document, 93.5 ha) of trees (value $465,711).  The cost was said to be $652,540.  (Unfortunately, the value only totalled $562,711.)

The 31 March 93 annual return said the trust had sold the cutting right for Rocky River for $150,000.  It gave the harvest area as only 80.4 ha and said the value of the forest and land was only $322,688.  It said the total cost was $412,098.  Under Note 5, “Amount Due for Settlement”, it said $120,000 was still outstanding on Rocky River, to be repaid “on a date to be advised by the vendor.”

The 31 March 94 annual return said that 34.5 ha had been harvested and replanting was occurring.  The forest area was still shown, however, as 91 ha.  The 95 annual return said an offer had been received for Rocky River but the sale was not completed.  It said another 35 ha had been replanted.

The 97 sales brochure said Rocky River was 100 ha freehold established 1976-95 and included 2.5 ha of eucalyptus.  The full PriceWaterhouse review said that this forest was remote and “lacked management attention.”  Curiously, this forest was omitted from the tables showing whether or not each forest was purchased from a related party (in PW’s “good faith” opinion).  PW put the cost of bush at $399,000 (not $652,540); since the estimated sale price was $1.262 million, that predicted an estimated profit of $863,000.

According to the public records, in the Clearwood Holdings file was a mortgage secured by advances dated 22 April 94 for the land comprised in Certificates of Title 68/26 (39.9399 ha), 2D/945 (35.5476 ha), 4A/1279 (14.4300 ha), 4C/1247 (29.5617 ha), 4C/1248 (18.6939 ha), and 4C/1249 (1.9544 ha).  It was subject to transfer 324967.1 granting forestry rights.  In the Waimea file there was a mortgage apparently identical in all respects.

I looked up 4A/1279 on Terranet.  It was purchased 3 May 95 by South Pacific Resources Commodity Traders Limited.  No price was given.  In November 93, it was transferred to Clearwood for $640,000 (yet this is for the next-to-smallest parcel of six).  A mortgage to Countrywide posted 10 May 94, a transfer to Waimea posted 23 May 94, and a mortgage to Countrywide posted also on 23 May 94.

For news articles on the Flat Rock Forests Trust, forestry, the Serious Fraud Office, one immigrant family's experiences, immigration specialists, fraud, juries, logging, and more, check out the News Table of Contents.  Or you may wish to visit the Forestry Trust Table of Contents to read how a unit trust went bust.  Or the Topics Table of Contents which offers a different approach to lots of topics - among them poisonous insects, eating dogs, what's addictive, training vs teaching, tornados, unusual flying machines, humour, wearable computers, IQ tests, health, Y chromosomes, share options, New Jersey's positive side, oddities, ageing, burial alternatives, capital punishment, affairs, poverty, McCarthyism, the most beautiful city in the world, neverending work and more...

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