Financial controller confirms debt amount

Press, 7 August 1989, Page 31

Financial controller confirms debt amount

NZPA-AAP Sydney Wrightson’s financial controller in New Zealand, Ross Hick, has confirmed that Tulloch Lodge Limited still owes several million Australian dollars from the 25 top yearlings bought at the Karaka sale alone. “We will be co-operat-ing with Inglis in Australia td recoup our losses. Tulloch Lodge bought up sAust4 million worth of horseflesh at Karaka, and of that at least half is still outstanding,” said Mr Hick. Smith was a flamboyant bidder at Karaka. Included among his buys was an impressive Danza-tore-Baby Bear colt and a Marscay-Like A Princess filly, both knocked down to him for SNZSOO,OOO and a Sir Tristram — Delightful Belle colt which went for $NZ425,000. “It was a total surprise when we heard that Tulloch Lodge had gone down. In 35 years of business, Smith has always paid within 30 days on the dot,” said Mr Hick.

“We have never had any problem with his business.

“It could have been worse —- several of those 25 yearlings have been paid for at least in part by Smith’s clients and he would not owe anywhere near the amount he spent at the sales.

“Wrightson should not suffer from this. I can’t say what the yearlings will make in the ring, but we are hopeful the unencumbered older horses will make up the difference.

“We will look for a share of the money from the sale of Tulloch Lodgeowned agistment property at Cootamundra plus syndication money from the sale of Star Watch and Mercury to top up the sale if necessary,” said Mr Hick. . Smith was the second biggest buyer at Karaka, totalling nine per cent of gross sales. He was beaten only by another Australian trainer also in financial difficulties, Bart Cummings, who made up 14 per cent of the gross. ■ “You could say that Cummings would have to owe us at least as much as Smith, but I can’t com-

ment on how much more or what we? will do to recoup that as yet,” said Mr Hick. Both trainers also bought at the. New Zealand Magic Million Sales, and are believed to owe money there as well. “I don’t have a crystal ball, but I would say this would affect New Zealand yearling prices the same way as Australian prices and knock the top end of the market right down. There are always people winning to buy at around $lOO,OOO, though, and that is the meat of the market,” Mr Hick said. Tommy Smith has confirmed that he will not bid for the Tulloch Lodge horses when they go under the, hammer on September 10. “They are all going into the ring, every one of the Tulloch Lodge Limited horses, and though I will watch the sale, I won’t be bidding,” said Smith. “I have plenty of horses of my own that are totally separate to the ones owned by the public company Tulloch Lodge. They are enough for me now.”