A weak High Court bid to block the receiver's sale of Allan Crafar's 16 dairy farms will not continue unless Mr Crafar fronts up with $50,000 for security of legal costs.Mr Crafar's Plateau Farms failed in a High Court bid today to block receivers KordaMe
A weak High Court bid to block the receiver’s sale of Allan Crafar’s 16 dairy farms will not continue unless Mr Crafar fronts up with $50,000 for security of legal costs.
Mr Crafar’s Plateau Farms failed in a High Court bid today to block receivers KordaMentha selling up the debt-ridden dairy empire – which owes back more than $200 million.
Justice Rhys Harrison, describing the injunction application as having little prospect of success, adjourned proceedings to August 6 to allow Crafar interests to file an amended statement of claim and pay the $50,000 security of costs to be split between evenly between Mr Crafar’s receivers and his lending banks.
Justice Harrison ordered the Crafar interests to pay $3000 towards the costs of today’s hearing and also granted leave for the receivers and the banks to apply for an order striking out Mr Crafar’s challenge to the farms’ sale.
The judge said he thought it doubtful there was any basis to the Crafar interests continuing to pursue their claim against the receivers and the banks in effort to stall the sale.
Mr Crafar has said he was in the process of arranging finance from up to three sources to pay down debt on his heavily mortgaged properties, but his lawyer Dan Parker told the court he was unable to provide any further evidence that funding was forthcoming.
Crafar’s interest now have just four weeks to prove that he has the money to redeem the banks’ loans.
However, the receivers could sell the farms in the meantime.
The court noted that Mr Crafar could settle his debts with the banks at any time prior to that.
Mr Crafar has a damages issue against the receivers and the banks if they accept a lower offer for the farms than what he might be able to achieve.
Tenders for the properties for sale by the receivers closed on Wednesday attracting a number of fresh bids, joining that of UNBZ/Natural Dairy’s, thought to be about $213 million.
