The price paid for teak increases the more processed it is ...
What will happen to the land after the final harvest?
Are the plantations still certified by FSC?
When can we expect to receive some money?
What about the profit I was promised?
Is there any additional income for Forests for Friends?
What about the newspaper articles that warned against ...
You warned us against possible dubious offers ...

What is my situation, if I do not want to participate in Forests for Friends?

What is the legal situation of those tree partners who do not become ...
Will I lose my entire investment, if I do not become a shareholder?
But the tree partners own their trees ...

The price paid for teak increases the more processed the wood is. What further business fields do you plan to enter?
It could indeed by attractive to widen the business along the value chain. However, as our first wood will not be sold before 2012, we have not yet considered this question in detail.

What will happen to the land after the final harvest?
We have not yet taken a decision. According to today’s knowledge, it is possible to cultivate a second rotation of teak trees based on the harvested trees. Due to the fact that the roots are already well-established, the growth of the trees will probably be faster.
What we can promise, however, is that we will look for an ecologically healthy solution.

Are the plantations still certified by the Forest Stewardship Council (FSC)?
Since the end of  2007, all our plantations are certified.
(FSC-certificate (PDF, 266 KB))

When can we expect to receive some money?
2018, at the earliest, will bring income to the books. But do not forget that 85 % of the revenues are due at the final harvest.
It is not our intention to sit on a pot of gold. Any dividends, capital repayments, or re-purchase of shares will be decided by the Annual General Meeting of Forests for Friends Ltd.
After 2026, when all the plantations have been harvested and the land sold for a second rotation, the value of the shares at the time will be paid back to the shareholders.

What about the profit I was promised?
We expect you will get your investment back plus a good profit. We cannot say exactly, how high this will be, as it depends on many factors, such as the market development of the price for plantation teak wood.
Our very conservative budget expects an annual value increase of 3 %. Respectable competitors promise a return of 7 - 8 %.

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Is there any additional income for Forests for Friends?
We are investigating various possibilities at the moment. For instance, we could sell land that is not suitable for growing teak. We are also checking out the possibilities of trading with CO2-certificates. But we cannot come up with a number yet.

What about the newspaper articles that warned against investing in Prime Forestry? Could the warnings still apply?
The business model is totally different: The product can no longer be defined as a financial product. Our shareholders are the owners of the company and can decide on the management and the distribution of the revenues.
The money for maintenance and management is put aside and will not be used for anything else. There will be no dilution caused by new plantations. 

You warned us against possible dubious offers. Are these a danger to the company?
We are still hearing of such offers. We do not think they endanger the operation. If you accept such an offer, we assume that you risk losing all the money you invested. We expressly warn you of such dubious offers.

What is the situation for the investors, who did not participate in Forests for Friends?

What is the legal situation of those tree partners who have not become shareholders?
The tree partners had a contract with bankrupt Prime Forestry Switzerland AG and they can register their claims with the receiver. As lenders, they are third-class creditors in the last class of creditors. As the receiver said in his third circular letter, there is only a very remote chance of their ever seeing their money again.
They have no claim against either Forests for Friends Ltd or Forests for Friends Panama Inc.

Will I lose my entire investment, if I do not become a shareholder?
This is most probable.

But the tree partners own their trees.
Unfortunately, the tree partners must understand that they never bought or owned trees in Panama. This is what the Swiss Banking Commission – the Swiss Financial Authority – decided and this was confirmed by the Supreme Court. The decision was primarily based on Article 11 of the General Conditions. Panamanian lawyers clearly state that tree partners have no chance of claiming their rights against a bankrupt company in Switzerland.

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