Creditors owed money by the failed National Dairy Products say they’ve been told the company made a combined loss of more than $6 million in the two years it was operating.
Those owed by the milk broker met in Melbourne this week at the offices of voluntary administrator Deloitte.
Deloitte Restructuring Services partner Glen Kanevsky told suppliers the company had made a $3.6 million loss in the 2014-15 financial year and $2.7 million loss the following year.
NDP was put into voluntary administration just over a week ago, with Deloitte called in by owner Tony Esposito.
Simpson farmer Alex Robertson said he was skeptical about what the administrators would find, adding the total amount owed could be as high as $10 million.
He said it did not appear Deloitte believed it was “a high-priority case” and felt the Australian Securities and Investments Commission 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 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.
Carpendeit’s Wyena Holstein’s Donna Edge said suppliers were told the company had never made a profit.
“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.
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,” she 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’.”