Creditors have decided to allow Northern Tasmanian dairy company Tamar Valley Dairy (Tamar) to continue trading, despite the Company reportedly owing up to $9 million.
Sydney-based accountants Lawler Partners met with creditors in Launceston last Friday to ask for up to four months of “breathing space” for Tamar.
Tamar moved to a new $20 million factory last year, and secured a 10 year-supply contract with Coles.
The Company’s Managing Director, Archie Matteo, told The Australian that the Company’s financial troubles were a “short-term liquidity problem” caused by a six-month delay in getting its new factory finished. The delay meant Tamar had not been able to fill the Coles contract.
The Company, which is a family-operated company, was also reportedly fielding offers of up to $8 million from other Australian food companies to help it overcome its debts.
Victorian dairy company Bulla was reported to be among the companies offering to take an equity stake in Tamar. Tamar was also reported to be considering an offer from another unnamed Tasmanian dairy company.
