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Farmers fight Russian giant

Rural News
Farmers fight Russian giant

A David versus Goliath court battle could be on the cards as a NZ dairy farmer takes legal action against a Russian multinational. South Canterbury dairy farmer Aad van Leeuwen and his wife Wilma have filed for a summary High Court judgment on what they say is Nutritek's failure to complete a contract to buy their 5.9% shareholding in New Zealand Dairies (NZDL).  The development is the latest twist in the long-running saga of the Studholme-based company which started processing in August 2007 reports The Rural News. Nutritek bailed out NZDL during the construction of its 150,000t/year plant and received Overseas Investment Office (OIO) approval to convert its debt to equity and acquire 100% of the shares last May. Shortly afterwards a contract was struck to purchase the Van Leeuwens' shares and those of two other founder shareholders, Kelly Diprose and Greg Misson. A target settlement date of October 14 passed with no settlement, as did a final deadline of December 14, with penalty interest to be paid from October 14. "˜We gave them another month (after December 14) then we said enough's enough. We've got rights too,' says van Leeuwen. Nutritek says it aims to avert the van Leeuwens' court action by completing the deal before the April 22 hearing date. He says financial issues which resulted in Standard & Poor's downgrading Nutritek parent NutriInvestHoldings to a negative rating were "˜technicalities' and "˜have now been rectified and will not affect NZDL'. However, it is too soon to say when the postponed $130 million investment in a second dryer capable of producing specialist infant formulas will be back on the table. "˜We need a much more thorough analysis of the market to calculate a payback period on that.' Dwyer says news NZDL could face competition for supply from a third processor in South Canterbury in 2011-12 is a potentially healthy development.

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