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6 Honey strategy needs stickier sector Vol 22 No 7, February 26, 2024
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Liquidator wants GDEx millions back Annette Scott
NEWS
T
Livestock
RANSACTIONS worth millions of dollars have been recalled by the liquidator of the failed Hamilton-based live export company Genetic Development (NZ) Exports Limited Partnership. At this stage all livestock companies involved with the Ocean Ute shipment have received letters advising that transactions at the time of the last Genetic Development (NZ) Exports Limited Partnership (GDEx) live cattle consignment to China, prior to the company’s liquidation in September 2022, were insolvent. Whether individual farmers will be held responsible and are also liable to return payments is yet to be determined. The companies have been advised that by way of Assignment of Proceeds, payments were insolvent transactions under the Companies Act 1993. Accordingly the livestock companies have been directed to return the funds. For most this is a return payment in excess of $1 million. One livestock company director said his company was instructed to repay the sum of the transaction, “but it’s in the hands of our lawyer”. “The ship sailed, the funds went to stock firms and were distributed to farmers. “What company has a few
million dollars sitting in the kitty to pay that back now and what farmer still has $200,000 sitting there?” the director said. Overall 160 farmers were involved in the May 2022 shipment. The number of livestock companies has not been disclosed. PWC liquidator Malcolm Hollis told Farmers Weekly the purpose of the insolvent transaction focus is to determine equalisation between creditors. Whether creditors were treated equally prior to liquidation is also under investigation. “We have got the powers to go through and determine any element of unfairness with some [creditors] paid in full and others not paid at all. “If some are aware they were getting paid in full and others not at all, therefore knowing how the process was happening indicates it’s not fair and equal, then it can be voidable. “The liquidator can make void any payments if they are found to have happened out of due process. “The issue we are looking to address is about a clear group of farmers and agents who managed to get protected and a group who did not get anything at all.” Hollis said the process is a relatively complex legal scenario and it’s in its early stages. “At the moment we have written to just the livestock agents; farmers are still in question. Continued page 3
Fire risk is only getting hotter Firefighters dampen hot spots during the recent Port Hills blaze in Christchurch. Officials are warning there is no immediate relief in sight as dry conditions start to bite. Photo: FENZ
NEWS 4, 5
Ten million bales of wool later Rob Cochrane started his career sorting mail and licking stamps. After 50 years in the fibre-sector, he has retired.
PEOPLE 16 Stress levels are growing in the dairy industry, as farm owners, sharemilkers and managers seek help.
Bacterial contamination the most likely cause of the semen quality issues for LIC, investigation finds.
Collared cows could help solve fire risk issues in New Zealand’s hill country, says Dr Derrick Moot.
NEWS 3
NEWS 6
OPINION 13
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