DISGRUNTLED Timbercorp shareholder Fred Woollard has joined a crack team of legal and corporate heavyweights to mount a takeover bid for debentures in the failed Timbercorp Orchard Trust.

The team has poured $500,000 into a fighting fund to ensure debenture holders gain a fair share of the trust's assets as the receivers carve up its citrus, table-grape and water holdings.

Mr Woollard's Hamilton Securities has announced it intends to make an off-market takeover bid for all the debentures of the failed Timbercorp Orchard Trust, which owns 11,971 megalitres of permanent water entitlement, and Renmark citrus and Euston table-grape blocks.

Under the takeover offer the trust's debenture holders would receive 30 A-class Shares in Hamilton Securities for each debenture they hold, which have a face value of $100.

There are 567,737 debentures on issue.

The Timbercorp Orchard Trust debentures were suspended from trading on April 23 and went into receivership on October 22.

Hamilton Securities was founded in October by Mr Woollard and fellow directors Steven Pritchard, Giles Craig and Gordon Elkington.

Hamilton executive chairman Steven Pritchard stated debenture holders had the choice of accepting the offer or waiting until the receivership runs it course.

"As a debenture holder, your asset is effectively in the hands of the receivers, and your debentures are virtually unsaleable," he said.

Mr Pritchard said that Hamilton Securities directors were not charging fees for their role as directors.

"Unlike the receiver, Hamilton Securities has been structured so that its directors will only make money from managing the debentures if the value of the debentures improves," he said.

"Each of Hamilton Securities directors will have capital indirectly invested in the debentures, via their shareholding in Hamilton Securities, so that they will share in both the gains and losses with other debenture holders who accept the offer.

"Hamilton Securities has the ability and incentive to fight for a better position for debenture holders who accept the offer."

If all debenture holders take up the offer, they would ultimately own 96 per cent of the shares in Hamilton Securities, with the directors owning the remainder.

The offer is due to open in early January, once approved by the Australian Securities and Investments Commission.