North Island Mussel Processors put into receivership by Sanford, Sealord

Wednesday 5th September 2012

North Island Mussel Processors is being placed in receivership after the owner of its one-third shareholder, Greenshell Investments, failed to pay $1.2 million in processing fees and associated debt.

North Island Mussel made the headlines in 2009 when it adopted the world's first automated mussel-opening machine at its Tauranga plant, a $23 million expansion that was opened by Prime Minister John Key.

Listed fishing company Sanford and Sealord Group, which own the remaining two third of North Island Mussel, will work with the receivers "to see if mussel processing operations can commence once the new Coromandel mussel season starts in mid-October this year and to protect the jobs of 20 full time staff and 200 additional workers employed on a seasonal basis," according to a statement from Sanford.

The receivership won't have a material effect on Sanford's financial results or banking covenants, the statement from Sanford managing director Eric Barratt said.

North Island Mussel is a toll processor for its shareholders, who export Greenshell mussels. As at midday today, a notice of receivership wasn't visible on the Companies Office website.

Shares of Sanford fell 0.5 percent to $3.85 and have slipped 5 percent this year.

BusinessDesk.co.nz

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