Sustainable Growth Group chairman Gregg Fryett has put together a rescue package for investors who face £36m losses following the collapse of the biofuels company.
In March, Money Marketing reported Southwark Crown Court had issued a freezing order on assets held by Sustainable Growth Group and its subsidiaries Sustainable Agro-energy and Sustainable Wealth Investments after a request from the Serious Fraud Office.
Around 1,500 people, mostly Sipp investors, are thought to have invested in the firms, which invested in Jatropha tree plantations in South-east Asia.
Last week, Fryett clashed with administrator Chantrey Vellacott at a creditors’ meeting over the best way to recoup investors’ money. Fryett accused the administrators of selling down assets rapidly rather than trying to complete plantation projects and return investors’ money.
The administrators claim SGG holds no rights to land sold to investors in Cambodia, despite having paid £3m for it.
Fryett has drafted individual recommendations for each country where the firm has investments. His plans include writing to the prime minister of Cambodia to resolve who owns the land and setting up a “multi-million-dollar” special-purpose vehicle for the Philippines project.
In a letter to investors, Fryett says: “I believe as creditors you have three options. You can do nothing. The administrator can act for your interests and, in my opinion, run roughshod over a group of companies, its assets and your value as he wishes and you will end up with very little or nothing.
“You can support this proposal by replying to me and also informing your Sipp provider or your agent.
“I would like to form a credit committee or rescue committee that has your representatives or you can form your own rescue group and I will consult for free to this group.”
Chantrey Vellacott administrator Adrian Hyde says: “The proposal from Mr Fryett is a narrative requiring substance and detail. When Mr Fryett has a formal proposal which is supported by figures, we will consider the matter fully.”