Large southern North Island farming enterprises placed in receivership

Friday 19th March 2010

Large Hawkes Bay and Manawatu farming enterprises Patoka Dairies and McVitty Properties have been placed into receivership under PricewaterhouseCoopers.

“The company appears to have over extended itself,” said one of the appointed receivers, Maurice Noone. “It has not been able to secure the necessary funding to complete certain development activities and to fund current operations and the projected debt levels. This is a last resort following extensive discussions between the parties, and is a result of them failing to reach an acceptable position for each.”

According Companies Office records, Patoka Dairies and McVitty Properties have common ownership in Robert and Margaret McVitty of Feilding.

The properties include half a dozen dairy properties, three sheep and beef properties and a number of dairy support properties.

There is a plan to complete the development of the properties and that as receivers, PWC would be working closely with the BNZ to secure necessary funding to enable its completion, said Noone.

“It’s very much a restructure and completion project, not a crash and burn and see what we can realise,” he said. “The properties are nowhere near what they can achieve in levels of production and what they are capable of. We intend to invest in the assets to restore the value and see where we go in the medium term.”

Though such a situation can cause uncertainty “we are adopting a business as usual approach, and all employees will be retained while we work through and develop our strategy,” he said.

Robert McVitty was convicted in the Palmerston North High Court in April 2008 for obstructing an animal welfare officer after he shot a cow in front of a MAF investigator, and he has also had a conviction for assault.

In two further episodes, he has been non-compliant with Horizons Regional Council over effluent discharge rules, and appeared on Fair Go last year on owing $66,000 to the business of Paula McCutcheon’s late husband. He paid the money soon after the programme aired.

Businesswire.co.nz

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