Green Oil Plantations
Formed in March 2010, Green Oil Plantations Ltd and Green Oil Plantations (Australia) Ltd entered administration just a little over three years later. Their Statement of Affairs made grim reading. Investors were staring at a financial black hole of over £25 million. In total, £24.4 million had been raised from 1131 investors, with 19% being via SIPPs and endorsed by a number of SIPP providers such asand Brooklands Trustees
This unregulated, illiquid and high-risk investment was set up to establish a Millettia tree plantation in Australia. The trees would be harvested after two years and sold primarily as biofuel and at a lower end, livestock feed and fertiliser. Aggressive promises on income revenue proved wide of the mark and within the first year, alleged “operational issues” with the Queensland-based plantation’s first harvest left the connected companies facing significant cash flow difficulties.
Unsurprisingly, the administrators raised concerns that the 100% owned Australian subsidiary, Green Oil Plantations Holdings Pty had seen fit to pass management of the plantation to Burman Bio Energy Pty, a company run by Neville Burman, a shareholder and former director of both of the Green Oil Plantations Limited UK companies.