A number of owners of Nant whisky barrels offered through an investment scheme promising a 9.55 per cent return have described their frustration in trying to redeem their barrels, including the company's founder Keith Batt's own brother, lawyer Gerard.
Mr Gerard Batt said he had been forced to sue his brother in the Tasmanian Magistrates Court to recover his investment in the barrels. He had received a cheque for $20,160 on the steps of the court just before the hearing was due to take place, he said.
The two brothers were once in property deals together, but have fallen out. Nant confirmed the matter had been settled.
Fairfax Media revealed on Saturday, that the founder and former owner of Nant, Keith Batt, put himself into bankruptcy on December 22, owing creditors $16.4 million. The debts are said to relate to the collapse of his property development business. In the months between March and August, he resigned as a director and shareholder of all the Nant companies and transferred ownership to his wife, Margaret Letizia. Nant director and lawyer David Dowd said this was to create an independent board but the restructuring could also have the effect of thwarting creditors from recovering assets in Nant.
Nant's whisky barrel scheme, advertised extensively in the Australian Financial Review, offers investors the chance to buy barrels of whisky which would be held at the Nant estate in Bothwell, Tasmania . Once they reached maturity, the investor could sell them back at an equivalent of 9.55 per cent compounded interest. The company said the barrels would generally take four years to mature but reserved the right to be the sole arbiter of when they were ready. Several investors in early offerings have now sought to recover their investment.
Several hundred barrels have been sold under the scheme, a spokeswoman said on Sunday. They represent an important part of the stock at hand but this will fall to 50 per cent by 2017, she said. Nant expects to sell between 90,000 and 100,000 bottles of whisky this calendar year
Another investor, who described himself as a friend of Mr Batt's, John Kuchel, said he had a 100 litre barrel, purchased in January 2010 that was now six years old. He had been asking about redemption since mid 2015, and had sent " three or four emails, copying in Mr Batt". He said he had been told it had been tested and was not ready. A spokesman for Nant said it had not yet reached maturity.
Peter Bignell, who worked on the restoration of the mill that houses the Nant distillery, said he was part paid with a barrel and provided a long email chain to show his interactions with Nant staff. He has now been paid. Nant said he had attempted to take the whisky and sell it under an inferior brand, and this led to a dispute.
Another prominent Tasmanian in the hospitality industry, who asked not to be named, said he began inquiring in 2013 about keeping his barrel and having it bottled in 2013. His barrel was among the first 100. A change in staff at Nant appears to have resulted in his queries stalling. He began asking about redeeming his investment again in May last year. He was finally sent an invoice on January 21. A Nant spokesman said the delays were due to the investor not responding.
"There are sometimes instances where barrel owners believe their barrel may have reached maturity and demand that Nant buy their barrel back. Under the terms and conditions of the offer, for obvious reasons, Nant is the only entity that determines when a barrel has reached maturity," Mr Dowd explained.
