Sandalwood giant Quintis calls in receivers after years of turmoil, price collapse
Quintis is the world's largest producer of Indian sandalwood. (ABC Rural: Clint Jasper)
The world's largest producer of Indian sandalwood has been placed in receivership following years of uncertainty and falling prices.
Quintis Australia and its subsidiaries, including Sandalwood Properties Limited and Quintis Leasing, have appointed FTI Consulting as receivers.
The firm will have control of the majority of the company's assets and operations.
"The receivers will urgently call for expressions of interest in the sale and/or recapitalisation of the business," a spokesperson for FTI Consulting said in a statement.
"[We] are currently working closely with key stakeholders to quickly conduct an independent assessment of the financial position of the entities."
Indian sandalwood takes 15 to 20 years to mature for harvest and is used in a range of fragrances, cosmetics, traditional medicines, furniture, and handicrafts.
Quintis runs vast Indian sandalwood operations in WA and the NT. (ABC Rural: Matt Brann)
Quintis owns thousands of hectares of sandalwood plantations and real estate across northern Australia, plus an oil distillation facility and shop near Albany in southern Western Australia.
The company has endured years of turmoil and 2022 marked the first time the exotic wood producer planted new trees since it entered administration in 2018.
Earlier in 2018, United States short-seller Glaucus Research Group accused the company of inflating prices for heartwood and sandalwood oil, and preventing outsiders from accurate price information.
The price of sandalwood fell by roughly 50 per cent between 2020 and 2023. (Supplied)
After recapitalising as a private company later in 2018 and reaping a record harvest in 2021, Quintis chief executive Richard Henfrey told the ABC in 2023 the price of heartwood had dropped significantly.
The news of the receivership comes after an assessment by KMPG late last year found Quintis' managed investment schemes were not financially viable and were dumped, leaving northern Australian landholders more than $1 million in debt.
The ABC understands from conversations with industry that the winding up of the multiple investment scheme plantations will continue as planned.