June 24, 2011
Australian dairy farmers to obtain less money
South-west Western Australian dairy farmers, who are involved in the collapse of Challenge Australian Dairy, have been told they will receive less than 25% of the money they are owed.
South-west Western Australian dairy farmers, who are involved in the collapse of Challenge Australian Dairy, have been told they will receive less than 25% of the money they are owed.
The dairy processor collapsed late last year with debts of about AUD21 million (US$15.5 million).
The company's assets were sold earlier this year but, until now, it has been unclear how much creditors would get.
Administrators PPB have now told dairy farmers they are likely to get between five and 24 cents in the dollar.
Imre Menshelley is chairman of a dairy co-operative which is the company's biggest creditor.
He said it is disappointing.
"There was an expectation of more than that, it will have a severe impact on their functioning in the dairy industry," he said.
"Some have left the industry, some are contemplating leaving the industry and once others hear of the final distribution they will have to then decide on their future within the industry."
The creditors' dividend is not expected to be finalised for at least two months.