Risky business
OPINION: In the same way that even a stopped clock is right twice a day, economists sometimes get it right.
Leon Francis Bowker and Luke Norman of KPMG, appointed as joint liquidators on November 29 last year, presented their six-month report earlier this month.
According to the report, ODH’s ‘income’ for the six months was $419,000, including $403,000 cash at bank, $10,000 from sale of intellectual property and $5000 bank interest.
Expenditure during the six months reached $14,000 including $12,400 relating to liquidators’ remuneration and expenses.
The liquidators says that over the past six months they facilitated the winding up of two subsidiaries, payment of outstanding creditors and a review of the company’s constitution and proposed distribution to shareholders.
“The liquidators will continue to facilitate the windup of the two subsidiaries and consolidate any distribution from the subsidiaries. The liquidators will prepare final tax matters for the company. The balance of net proceeds will be distributed to the shareholders once final tax obligations have been met,” the report says.
ODH, touted as New Zealand's only 100% farmer-owned organic milk producer, was placed into voluntary liquidation by its directors.
ODH collected milk daily from its farmer base, stretching from Northland to Wairarapa. About 20% of that milk was turned into milk powders and nutritional products, processed at Waikato Innovation Park in Ruakura and generally exported to Australia and Asia, with some New Zealand customers as well.
It also produced ‘Our's Truly’ brand liquid and UHT milk, and cheese using third party processors. The products were sold locally and exported.
According to documents lodged with the Companies Office, ODH directors Michael Allen Brown, Cameron Farrand, Sharleen Gardner, John Wafer, Frank Goodin and Ian Cumming voted to liquidate the company on November 22 last year.
The directors declared that after making an inquiry into the affairs of the company, they were confident that the company was able to pay off its debts in full within 12 months.
No reason was given for the demise of ODH by its directors.
In their first report, the liquidators said the company was being wound up after ceasing trading.
“After paying any remaining creditors, remaining funds will be distributed to shareholders. This is a solvent liquidation and will remain solvent for the period of the liquidation,” the liquidators say.
