Our Capabilities - Receiver and Manager Appointed

Industry Sector	Agribusiness
Assignment	Receiver and Manager appointed by Secured Creditors owed $23.5 million.

The Issue

The company had $22 million turnover with a bank debt of $23.5million. It built the largest corn processing plant in the southern hemisphere with the ability to process 50,000 tonnes of corn (equates to approximately half of Australia’s domestic market).

The company was the sole supplier of pickles to McDonalds in Australia, also supplied Hungry Jacks, Burger King & Subway.

Scope of the Assignment

Realisation of assets for repayment of secured debt.

The Solution

After undertaking an exhaustive sale process and subsequent lengthy negotiations, contracts were entered into with various parties to sell:

over 4,000 Megalitres of high security water rights
core business
two farms
main processing factory

Value Added

Continued to trade pickle processing business throughout the 2½ year period of receivership & eventually sold business as going concern thereby preserving employment and maximising the return to the financiers.

By concurrently negotiating with the owner of an adjoining property to the main processing factory for the sale of that property to the purchaser of the main processing factory, we enhanced the value of the business and assets by resolving various issues relating to access to the processing factory and EPA licensing requirements.

At the time of our appointment the Company had potentially breached various fire and building regulations in respect of the main processing factory which may have affected the future occupancy of the site. Through extensive negotiations with NSW Fire Brigade, local council, Country Energy, the Department of Infrastructure, Planning and Natural Resources (DIPNR) and the purchaser we were able to achieve a sale of the processing factory to the satisfaction of all parties.

By staging the realisation of assets and sale of such assets to different parties we achieved a significantly better return to the secured creditors than otherwise would have been achieved by an immediate closure and asset realisation program.