THE RUMOURS sweeping the grains industry over the past couple of weeks have proved correct with the news Wagga Wagga-based grains business Grainpro has been placed into administration.
There were serious concerns surrounding Grainpro after growers reported late payments and their worst fears were confirmed earlier this week, with the Australian Securities and Investment Commission (ASIC) placing an initial creditors notice on its website on Monday.
The ASIC notice said Sydney-based Farnsworth Shepard had been appointed as administrators for Grainpro, which bought and sold a range of grain and hay commodities as well as providing market advisory services.
It also said an initial creditors meeting would be held in Wagga Wagga on August 7.
The extent of the debts owed by Grainpro is unknown, but industry analysts are not expecting it to be as big as Lempriere Grain, which collapsed earlier in the year.
The grain trade is unlikely to have a high exposure to the business, due to many not dealing with the company.