A creditors' meeting in Melbourne yesterday voted to liquidate 27 of Great Southern's 35 companies that were in administration.

However, the liquidation of the responsible entity, Great Southern Managers Australia Ltd, was decided on the casting vote of administrator and meeting chairman Martin Jones, of Ferrier Hodgson.

The future of the remaining eight companies will be dealt with at a round of meetings in Perth on December 3.

Mr Jones stressed that the liquidation of the companies did not affect the viability of the schemes.

"The company will be wound up, not the schemes," he told the meeting.

Including proxies, 1825 creditors were represented at the meeting.

Ferrier Hodgson recommended the creditors wind up Great Southern because no other option was available.

Mr Jones said control would not be handed back to the directors and there was no third party available to take over.

"The companies are clearly insolvent," he said.

One questioner said the banks appeared to be playing hard ball.

"The banks want the land back so they can sell it off. They don't care about the growers or the administrators," he said.

"The banks will still make the ultimate decision … They have total control."

The major secured lenders are Commonwealth Bank and ANZ.

Mr Jones replied: "That is not an inaccurate observation."

The banks had lent Great Southern $500 million and had security over their assets.

"They have the right to do that. That's how the law works," Mr Jones said.

Three groups are vying to acquire Great Southern's various forestry schemes: Pulpwood Plantations, headed by West Australian business leader Gordon Martin and backed by US hedge fund Och-Ziff Capital Management Group; Black Tree Group, headed by prominent Perth businessman John Poynton, forester Tony Jack and the Bunnings family; and timber giant Gunns.

The banks have refused an offer from Och-Ziff.