The receiver for Russian-owned New Zealand Diaries is in "advanced discussions" with interested buyers.
Moscow-based investment bank VTB Capital appointed Colin Gower, Stephen Tubbs and Brian Mayo Smith of BDO Chartered Accountants as receivers for NZ Dairies yesterday.
They intend to put the group, which includes milk processing facilities in Studholme, up for sale, and have called a meeting with farmer suppliers keep them up to date.
"There are already advanced discussions in place with a number of interested parties regarding the purchase of the business," the receiver said in a statement.
Earlier this year, NZ Dairies' Russian parent Nutritek was declared bankrupt after missing repayments on a 403 million ruble loan to Russian lender UniCredit. Nutritek was set up in 1990 and had operations in Russia and the Ukraine, as well as the New Zealand milk processing factory.
Last month, The Press newspaper reported the Studholme processing plant had attracted interest from potential Chinese buyers, after being put on the market in November 2010.
Nutritek bought into the business in 2008.
The receivers said they have opened talks with the plant's employees "with a view to keeping them informed about the future of the business."
(BusinessDesk)
1 Comments
Corporate dairy factory example where farm suppliers become unsecured creditors. Highlights the benefit of dealing with Fonterra that has an investment grade credit rating. This is the conversation of "will I ever get paid" rather than is my milk price $6.10 or $6.30.
Maybe the independent processors should be paying a premium above Fonterra, as they have a greater risk of going bust. This is counterparty risk. Rather (as noted on this site) the independent processors are claiming to parliament that they should pay 50 cents/kgMS less than Fonterra's farm gate price, whatever it is.
Sounds cart before the horse somewhere ....
From below: Its not as if our friends in Dunsandel are flush with cash or are they. How bright could a bright future be ....
Story Detail:
Dairy farmers owed about $30million were told yesterday they would have to wait a month for a payout following the receivership of the Studholme dairy factory.
Negotiations are said to be under way to sell the Studholme milkpowder factory to Chinese-owned company Synlait. Christchurch-based merchant banker Ocean Partners has also taken an interest in the company's assets.
http://www.stuff.co.nz/timaru-herald/news/6950288/Farmers-told-payout-d…
There is a very long background story to this:
The dairy factory at Studholme has employed about 60 people and bought milk from Fonterra and its own farmer-suppliers.
Nutritek completed the acquisition of the factory in 2009 by buying shares in New Zealand Dairies Ltd, investing up to $150m.
Nutritek has been involved with NZDL since 2006 and achieved 100 per cent ownership after a long-running ownership dispute.
The Russians arrived in South Canterbury in 2006 to rescue the Studholme dairy factory during construction, when the original backers ran out of money.
Their company was then taken to the High Court in Auckland after it failed to meet agreed deadlines to buy out three minority shareholders, including Aad van Leeuwen, South Canterbury's biggest dairy farmer.
http://www.stuff.co.nz/timaru-herald/news/6943680/Russian-dairy-factory…
http://www.converge.org.nz/watchdog/20/07.htm
http://www.odt.co.nz/news/farming/46093/nz-dairies-deferring-studholme-…
http://www.nzembassy.com/russia/news/russia-invests-in-new-zealand-dairy
http://www.nutritek.ru/en/index.php
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