Otahu Flat farm goes under owing more than $5 million
A Western Southland dairy farm has been put into receivership, owing more than $5 million to its creditors, a receivers report says.
Malcolm Hollis and Maurice Noone of PricewaterhouseCoopers were appointed receivers of Dosanjh Limited, a dairy farm near Otahu Flat, by ANZ Bank New Zealand Limited.
Their first receivers report, published on December 21, says the company was put into receivership after failing to pay the bank. It said the company owed secured creditors ANZ $4,973,404 and CRT Finance Limited $13,687.
Preferential creditor, Inland Revenue, was owed $5261.
Unsecured creditors, not specified in the report, were owed a total of $93,689.
Assets of the company consisted of the property, plant and livestock associated with the dairy farm along with milk company shares.
Company director Harjinder Singh Dosanjh, from Otautau, had been in the process of selling the farm, the report says.
The director had already signed a sale and purchase agreement but receivers did not adopt the contract and put the property back on the market to get a better price.
Eight offers were received for the property, plant and shares before it was sold to the highest bidder on December 18.
Receivers sold all livestock owned by the company.
As there remained a shortfall to the first ranking secured creditor, there would be no surplus funds available to pay unsecured creditors, the report says.
There were funds available for preferential creditors, who were expected to be paid in full.
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