THE future of Young Flour Mill and Young Stock Feeds - and around 30 local jobs - still hangs in the balance after a meeting between creditors and administrators this week.
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Held at the Young Services Club on Wednesday the meeting drew approximately 100 people to establish a committee of creditors and resolve whether to remove the administrators from office and appoint someone else.
Administrator John Vouris of Sydney firm Lawler Partners said, the following day, it was a well attended, robust meeting.
“A lot of issues were canvassed, the committee established a cross section of all creditors and will decide on the future of the company,” he said.
The administration appointed by the directors stayed in place.
Mr Vouris said the administrators’ job was to get the most return they could for creditors.
At the meeting Mr Vouris told creditors the company had been advertised for sale, with expressions of interests closing August 15.
He said a deed of company arrangement could be proposed by the board of directors or any other party, and administrators would pass on their recommendations to creditors.
It was then up to them to decide at the next meeting on August 31 whether to reject it and put the company into liquidation, adjourn it for up to 45 days, hand the company back to the directors or accept it, Mr Vouris said.
Tensions ran high among many of the creditors including local growers, with some inquiring into exactly when the company had become insolvent and whether there had been any mishandling by directors.
Mr Vouris said he was investigating these matters and would report his findings to creditors at the next meeting.
He said if there was no deed accepted the court could appoint the company into liquidation.
He told creditors if the company went into liquidation they would get nothing, as no money would be left after paying the $3.6 million owed to the first charger, the National Australia Bank, along with monies owed to secured creditors and employees.
“No deed, no buyer - it’s very simple – we shut the door,” he said, “it’s not going to do you any good.”
The company owed a total of $8 million, he said, with $5.6 million owed to the unsecured credits attending the meeting.
He said the only immediate threat to the company was if the NAB decided to put the company into receivership.
Mr Vouris said another creditor — insurance company Allianz — had lodged a winding up summons of the company, which had been adjourned.
No creditor could force the company into liquidation while the summons was adjourned, Mr Vouris said.
He said four jobs had already been lost at the company, which was continuing to trade week-by-week.
“It’s a struggle,” he said, “we’re keeping the wolves from the door.”
He said AustAsia Milling Pty Ltd was in the process of suing the Cootamundra Oil Seed Company for $4 million. However, Mr Vouris said this could result in anything from the full amount being awarded to the company to zero dollars.
At the end of the meeting, he told creditors he would let them know of his investigations.
“Let’s see if we can get out of this mess,” he said.
Creditor and grower Chris Holland he was unsure whether he was satisfied with the director’s handling of the situation.
“I’m not totally satisfied because we haven’t been paid, but really I’m not aware of the full circumstance of what’s happened,” he said.
“The best way forward is to work with them to keep the company trading as it is,” Mr Holland said.
