Organic Dairy Hub Continues Liquidation Process, Aiming for Solvent Closure
Source: The DairyNews
The liquidation of Organic Dairy Hub (ODH), once New Zealand's sole 100% farmer-owned organic milk producer, is progressing steadily, according to a recent update from the appointed liquidators.
Leon Francis Bowker and Luke Norman of KPMG, who took on the roles on November 29 last year, have released their six-month report detailing the financial activities and ongoing closure procedures of the co-operative.
During the past six months, the liquidation has generated income totaling $419,000. This sum includes $403,000 held in cash at the bank, $10,000 from the sale of intellectual property, and $5,000 in bank interest. Expenses incurred in the same period amounted to $14,000, of which $12,400 covered the liquidators' remuneration and expenses.
The liquidators have successfully facilitated the winding down of two subsidiaries, the payment of all outstanding creditors, and a review of the company’s constitution in preparation for the proposed distribution to shareholders. "The liquidators will continue to facilitate the windup of the two subsidiaries and consolidate any distribution from the subsidiaries," the report stated. They also plan to prepare final tax matters for the company before distributing the balance of net proceeds to the shareholders once final tax obligations have been met.
ODH, known for its daily collection of milk from farmers across regions from Northland to Wairarapa, had diversified its product range to include milk powders, nutritional products, and 'Our’s Truly' brand liquid and UHT milk, along with cheese. These products were processed using third-party processors and were marketed both locally and internationally, particularly in Australia and Asia.
Despite the directors' initial confidence in the company's ability to clear its debts within a year, no specific reasons were provided for its eventual liquidation. The directors, Michael Allen Brown, Cameron Farrand, Sharleen Gardner, John Wafer, Frank Goodin, and Ian Cumming, decided on the liquidation on November 22 last year, citing the need to cease trading.
The liquidators emphasized that this is a solvent liquidation, with the company expected to remain solvent throughout the liquidation period. The ongoing process will ensure that after paying any remaining creditors, the remaining funds will be fairly distributed to shareholders, concluding the operations of what was a pioneering entity in New Zealand's organic dairy sector.
During the past six months, the liquidation has generated income totaling $419,000. This sum includes $403,000 held in cash at the bank, $10,000 from the sale of intellectual property, and $5,000 in bank interest. Expenses incurred in the same period amounted to $14,000, of which $12,400 covered the liquidators' remuneration and expenses.
The liquidators have successfully facilitated the winding down of two subsidiaries, the payment of all outstanding creditors, and a review of the company’s constitution in preparation for the proposed distribution to shareholders. "The liquidators will continue to facilitate the windup of the two subsidiaries and consolidate any distribution from the subsidiaries," the report stated. They also plan to prepare final tax matters for the company before distributing the balance of net proceeds to the shareholders once final tax obligations have been met.
ODH, known for its daily collection of milk from farmers across regions from Northland to Wairarapa, had diversified its product range to include milk powders, nutritional products, and 'Our’s Truly' brand liquid and UHT milk, along with cheese. These products were processed using third-party processors and were marketed both locally and internationally, particularly in Australia and Asia.
Despite the directors' initial confidence in the company's ability to clear its debts within a year, no specific reasons were provided for its eventual liquidation. The directors, Michael Allen Brown, Cameron Farrand, Sharleen Gardner, John Wafer, Frank Goodin, and Ian Cumming, decided on the liquidation on November 22 last year, citing the need to cease trading.
The liquidators emphasized that this is a solvent liquidation, with the company expected to remain solvent throughout the liquidation period. The ongoing process will ensure that after paying any remaining creditors, the remaining funds will be fairly distributed to shareholders, concluding the operations of what was a pioneering entity in New Zealand's organic dairy sector.
