‘Bread-gate’ tape reveals Yarrows’ conspiracy - Peters

A recorded conversation reveals the depth of a “plot” to force Taranaki bakery Yarrows into receivership, parliament has been told.

NZ First leader Winston Peters, speaking under parliamentary privilege, described the recording as a “bread-gate” tape, and named several individuals as party to the conversation.

Mr Peters’ outburst follows a series of articles published in The National Business Review relating to the receivership of Yarrows (The Bakers) Limited, supplier to global sandwich maker Subway.

In parliament Mr Peters said Yarrows bakery in Manaia, Taranaki, went into receivership when it was valued at $100 million and sole shareholder Paul Yarrow had just secured an international joint venture worth $200 million over ten years.

"This is a story how an Australian bank, some Ned Kellies across the ditch and some local businesspeople robbed a small New Zealand town of its livelihood," Mr Peters said.

“A group of individuals set out to take control of this joint venture and force Mr Yarrow out.

“It is about how a gang of corporate thugs screwed dozens of people out of their jobs.”

Yarrows’ New Zealand operations were placed into receivership last May, owing Westpac $55 million and a charitable trust nearly $20 million.

Before receivership, Yarrows was owned by Paul Yarrow, son of the late Noel Yarrow - whose charitable exploits reverberated through the Taranaki region.

The receivership apparently occurred when Paul Yarrow declined to sign off on a recapitalisation deal involving Japanese company Sumitomo and various other Yarrows’ directors.

When the deal collapsed receivers from BDO were appointed.

Thereafter the local business was soon sold to Paul’s younger brother John, but the Australian business wasn’t included in receivership and continued trading.

The Australian business is now caught up in a legal battle, as revealed by NBR last week, and is a prequel to another case scheduled to be heard in the High Court of New Plymouth - between Mr Yarrow and his former financial advisor Michael Finnigan.

Mr Peters said he understood the Serious Fraud Office was “about to step in”.

He said a “conspiracy” would be revealed in the NSW Supreme Court in Sydney today.

“A tape recording reveals the depth of this plot and what these people conspired to do,” Mr Peters said.

"For example, we have Michael Finnigan, former trusted adviser to Paul Yarrow, saying: ‘Lets’ threaten receivership.’

"Then we have Trevor Perry, who describes himself as ‘an angel investor’, saying to the Westpac representative, Nick Hale: “I never thought I’d be happy to see a demand put on a company by a bank.”

“It is all on tape. I have just one question for Mr Hale and Westpac and it is this. Why? The reason is they wanted control of the planned joint venture bakery operations from the Japanese company Sumitomo, and mostly they wanted Paul Yarrow out so that they could transfer assets from his family company in Manaia to pay for their shares at the discount price in Australia.”

“When Paul Yarrow would not agree they threatened to ruin him, and so it transpired. Westpac followed through on the directors’ threat and called in the receivers. Prior to this conspiracy Westpac was on the verge of getting 90% of its money within weeks.

“What are the connections between company directors Warren Duncan, Trevor Perry, Colin Pettigrew, and Westpac officers John Chapman and Nick Hale, and Brian Mayo-Smith of BDO?”