Beleagured milk broking company National Dairy Products (NDP) has debts of more than $4.5million and only a handful of assets, according to administrators.
The administrators, Deloitte Touche Tohmatsu, declined to comment on claims up to 100 creditors – including farmers, transport companies and processors – would be seeking payment, from the company.
The first meeting of creditors will be held next Monday, after it was placed in voluntary administration last week.
Former supplier Alex Roberston, Simpson, said it was unlikely farmers would get the money they were owed.
“There is about $100,000 left in the company, so there is not going to be a hell of a lot to go around,” Mr Robertson said.
The appointed administrators, Glen Kanevsky and Salvatore Algeri, of Deloitte Touche Tohmatsu, said it appeared NDP’s debts exceed $4.5 million.
“Books and records show an amount in excess of $4.5m, which includes approximately $1.1m owing to Scottish Pacific as the secured lender under an invoice discounting arrangement,” Mr Kanevsky said.
“We have also been advised by management that there are loan accounts between various related parties.
“However we have not yet made an assessment of any related party assets or liabilities. “
Mr Kanevsky said on current estimates, Scottish Pacific would be repaid in full.
“Beyond that, there is only a very small number of physical assets – two motor vehicles and some office equipment and furniture.”
The first meeting of creditors would involve the appointment of administrators.
“Creditors have an opportunity to establish a Committee of Creditors with whom the Administrators would consult/communicate,” a Deloitte spokesman said.
Suppliers have said they are owed up to $300,000 by NDP, whose sole director is Violetta Esposito.
NDP farmers have been taken on by other processors, notably Murray Goulburn and Fonterra.
