In the absence of a Deed of Company Arrangement (DOCA) proposal, creditors resolved to wind up the company.
”Subject to the availability of funding, a public examination of current and former directors is likely to take place in the short term,” NDP administrators Glen Kanvesky and Salvatore Algeri said.
Deloitte was now expected to pursue NDP owner Tony Esposito and director, his wife Violetta, for more than $4.3 million in what are known as “voidable transactions.”
Mr Kanevsky and Mr Algeri told creditors there were $4,343,339 in voidable transactions, which could be recovered.
The Espositos initially offered a DOCA which would have seen creditors receive $521,000, but that was subsequently withdrawn.
“As our investigations continue, we will consult with the Committee of Creditors on developments as required,” Mr Kanevsky and Mr Algeri said.
A creditors meeting agreed the company would be put into liquidation.
Gippsland dairy farmer, Fiona Plant, said creditors were disappointed that the Esposito’s didn’t put out a revised DOCA (DOCA) or attend the meeting.
“We are all pondering what that means, for all of us,” Ms Plant said.
“I hoped he had put something out, and he didn’t.”
“After all we have done for him, the least he could have done is show us the money.”
Ms Plant said a deed would have saved a lot of time and money, as the matter would now go before the courts.
“We were all hoping, because getting money we are owed, is far better than getting little to nothing.”
The Plants have estimated they are owed nearly a quarter of a million dollars, by NDP.
Chris Gleeson, Koroit, said he was very disappointed with the outcome of the meeting, “since his sign said he was always dedicated to farmers’ futures.
“We are the ones who helped build his wealth, the least he could have showed was a bit of respect for us, that he hasn’t turned up to face the farmers.”
Carpendeit’s Donna Edge said she hoped Mr Esposito would “turn up with the money.”
Alistair Cline, Gippsland, said he was owed $800,000 for this year’s milk supplies and the Esposito’s needed to be held to account.
“I’ve had to draw on all my reserves, borrow some money, my equity position has had to shift, from one creditor in particular,” Mr Cline said.
“I am in it for the long haul, this can’t be just allowed to disappear.
The report to creditors said there was the potential to recoup $750,000 in other cost, but warned it could take up to $1.74m to pursue legal action.
Mr Kanevsky and Mr Algeri said a pessimistic scenario would see slightly more than $3million, being available to creditors.
Mr Esposito has been contacted for comment.