Phil King's hedge fund Regal Partners caught up in Altus Renewables collapse
One of Regal's funds is pursuing a Federal Court dispute linked to the collapse of timber waste-recycling company Altus Renewables.
Phil King's Regal Funds Management has been caught up in the collapse of waste business Altus Renewables, taking legal action against liquidators from McGrathNicol and receivers from FTI Consulting to recoup around $12 million in surplus funds.
According to court filings, law firm DLA Piper Australia, Regal, which is acting as trustee for its Regal Emerging Companies Opportunities Fund, brought court proceedings against three McGrathNicol partners — Matthew Caddy, Robert Smith and Jamie Harris — as well as FTI’s named receivers, John Park and Ben Campbell earlier this month. A brief first case management hearing in the matter took place on Thursday morning before Federal Court Judge Ian Jackman.
Altus Renewables turned wood waste into pellets to be used in industrial heating and energy markets, “as a viable option to replace coal”. According to ASIC filings, the company entered administration in August 2023, with McGrathNicol appointed as administrators and Japan’s Mitsui appointing FTI Consulting as receivers, as reported by the Australian Financial Review at the time.
Mitsui has lodged a damages claim against the FTI receivers of $9.3 million over alleged costs and losses associated with one "missed shipment" under a 2018 "Energy Wood Pellet — Sale and Purchase Agreement".
