Cedenco placed in receivership by ANZ, given seasonal funding to trade through

Monday 9th November 2009

Cedenco Foods, the tomato, corn and apple processor, has been put into receivership by ANZ National Bank, which extended seasonal funding to allow the company to continue to trade.

The move follows a “breakdown in governance and ownership issues,” receivers KordaMentha said in a statement.“Whilst the business will ultimately be sold we are in the fortunate position of having funding from ANZ National who is committed to the future of the business,” said Brendon Gibson, a spokesman for KordaMentha.

Cedenco has shuttered factories this year in response to a downturn in global demand. It closed a retort factory, which processed corn cobs, in July with the loss of 125 seasonal jobs. In May, the company had to advise the market it was ‘business as usual’ after a U.S. affiliate, SK Foods LP sought Chapter 11 bankruptcy.

ANZ National’s parent, Australia & New Zealand Banking Group has also appointed receivers for Cedenco’s Australian affiliates SK Foods Australia, Cedenco JV Australia and SS Farms Australia.

ANZ National said in its statement that it “recognizes the importance of Cedenco to the Gisborne and Hawkes Bay Communities.”

It said funding was in place to pay growers who had planted crops for Cedenco.

Businesswire.co.nz

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