Final settlement for Crafar farms

30 November 2012

Final settlement for Crafar farms

Today, after a long and extensive process, the Receivers from KordaMentha have secured final settlement with Pengxin New Zealand Farm Group Limited for the Crafar Farms.

Pengxin New Zealand Farm Group Limited's offer was accepted by the Receivers two years ago and has been subject to many hurdles, opposition and challenges.

Brendon Gibson of KordaMentha said "despite a long and challenging process, we are happy to have secured the sale of the Crafar farms at a very pleasing price. Following extensive local and international marketing of the farms as individual units and as a group, Pengxin's offer was far and above the best received so we are very satisfied to secure final settlement.

"We have operated the properties for three years and the farms will be handed over as a full going concern for Pengxin and Landcorp. The farms we inherited required some hard work and investment during a volatile economic environment, the support of our appointing banks, staff and sharemilkers during these challenging three years has been exceptional. We understand the new owners and operators will continue that work and investment in the farms.

"We met a number of significant challenges, and time-consuming obstacles during this receivership which ultimately prolonged and increased the complexity and cost of the transaction. Despite this, we achieved a significantly improved outcome for our clients than any other available options.

"This was one of the most difficult, challenging and complex transactions we have completed," he said. The receivership will conclude with the final Fonterra payout for this season due in October 2013.

Ends.

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