Receivers seek buyers for NZ Dairies

Receivers for Waimate-based NZ Dairies are seeking buyers for the business amid concerns from farmer suppliers about their milk payments.

Russian Bank VTB Capital, owed about $28 million, yesterday appointed Colin Gower, Stephen Tubbs and Brian Mayo Smith of BDO Chartered Accountants as receivers to NZ Dairies and related company Dairy Exports New Zealand.

NZ Dairies is owned by Russian firm Nutritek, which recently transferred its shares in the South Canterbury company to trusts based in Cyprus.

In a statement today, BDO called for expressions of interest as they intended to market the companies for sale.

The receivers noted there were already advanced discussions in place with a number of interested parties over purchase of the business.

NBR ONLINE reported yesterday that dairy farmer suppliers were due sizable payments for their milk. The total figure is thought to be about $30 million.

“The receivers' objective is to preserve the jobs and operations in the short term,” BDO said in a statement.

“The receivers have a strong desire to work with both the famers who supply the companies and the companies’ employees.

"As such, the receivers will be meeting with the farmers to discuss the implications for them going forwards and any concerns or queries they may have.

"The receivers have also commenced discussions with employees with a view to keeping them informed about the future of the business.”

BDO gave a contact phone number - 03 379 5155 – for any party with an interest in purchasing the companies.

However, as NBR reported yesterday, a report by insolvency specialist McGrathNicol last November painted a bleak picture for NZ Dairies.

The report suggested a merger with rival Synlait as one possiblilty.

Duncan Bridgeman
Fri, 18 May 2012

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Receivers seek buyers for NZ Dairies