Creditors, owed money by failed Victorian milk broker, National Dairy Products, have said they’ve been told the company made a combined loss of more than $6 million, in the two years it was operating.
The first meeting was held at the offices of voluntary administrator, Deloitte, in Melbourne.
Suppliers who attended the meeting said Deloitte Restructuring Services partner Glen Kanevsky told them the company had made a $3.6m loss in the 2014-15 financial year and $2.7m loss in 2015-16.
Lynden Plant, Gippsland, said the company’s founder Tony Esposito, and director Violetta Esposito were among the unsecured creditors.
“There’s $3.8m owning to Violetta and Tony and $3m to suppliers,” Mr Plant said.
Mr Plant, and wife Fiona, milk 900 cows at their property Le Ferme, Riversleigh, Gippsland.
NDP was put into voluntary administration just over a week ago, with Deloitte called in by the Espositos. But Ms Plant said administrators only revealed the amount owed to creditors, who had actually lodged claims.
Carpendeit’s Wyena Holstein’s Donna Edge said suppliers were told the company had never made a profit, since it was founded about 18 months ago. “It doesn’t look like there is any money there,” Ms Edge said.
She said administrators had told the meeting all they had found was a leased office, a couple of cars and some office furniture.
Mr Robertson said he was sceptical about what the administrators would find, adding the total amount owed could be as high as $10m. He said it did not appear Deloitte believed it was “a high priority case” and felt the Australian Securities and Investments Commission (ASIC) would be unlikely to investigate.
“It is still unclear as to what they investigate and what they will find, so it’s too early to tell as to what they will find and what they won’t find, so, we will wait and see,” Mr Robertson said.
It would be a toss up to decide whether suppliers would pursue it, or walk away and count the situation as a loss.
“We will have to weigh that up, when all the details are exposed,” he said.
In a bizarre twist, Ms Edge said Mr Esposito had come to the meeting to present his version of what had happened with the company, but didn’t stay.
“Mr Esposito came in, and walked around the room and wanted to shake people’s hands,” Ms Edge said. “Only two people shook his hand, and the others abstained, and he then decided he would leave the room, because he told the administrator he ‘wasn’t feeling the love’,” she said.
