Creditors vote to wind up NDP

23 Feb, 2017 08:50 AM
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Creditors outside the meeting that voted to wind up troubled milk broker, National Dairy Products (NDP). PHOTO: Andrew Miller.
After all we have done for him, the least he could have done is show us the money.
Creditors outside the meeting that voted to wind up troubled milk broker, National Dairy Products (NDP). PHOTO: Andrew Miller.

Troubled Victorian milk-broking company National Dairy Products (NDP) is to be wound up.

A creditors' meeting, held at the company’s administrators Deloitte, agreed the company would be put into liquidation.

Gippsland dairyfarmer, Fiona Plant, said creditors were disappointed that the Espositos didn’t put out a revised Deed of Company Arrangement (DOCA) or attend the meeting.

“We are all pondering what that means, for all of us,” Ms Plant said.

“I hoped he had put something out, and he didn’t.

“After all we have done for him, the least he could have done is show us the money.”

Deloitte was now expected to pursue NDP owner Tony Esposito and director, his wife Violetta, for more than $4.3 million in what are known as “voidable transactions”.

NDP administrators Glen Kanevsky and Salvatore Algeri, of Deloitte, told creditors there were $4,343,339 in voidable transactions, which could be recovered.

The Espositos initially offered a DOCA that would have seen creditors receive $521,000, but that was subsequently withdrawn.

Ms Plant said a deed would have saved a lot of time and money, as the matter would now go before the courts.

“We were all hoping, because getting money we are owed is far better than getting little to nothing,” she said.

The Plants have estimated they are owed nearly a quarter of a million dollars by NDP.

Chris Gleeson, Koroit, Vic, said he was disappointed with the outcome of the meeting, “since his sign said he was always dedicated to farmers’ futures.

“We are the ones who helped build his wealth, the least he could have showed was a bit of respect for us, that he hasn’t turned up to face the farmers,” he said.

Donna Edge, Carpendeit, Vic, said she hoped Mr Esposito would “turn up with the money”.

Alistair Clyne, Gippsland, said he was owed $800,000 for this year’s milk supplies and the Espositos needed to be held to account.

“I’ve had to draw on all my reserves, borrow some money, my equity position has had to shift, from one creditor in particular,” Mr Clyne said.

“I am in it for the long haul, this can’t be just allowed to disappear."

The report to creditors said there was the potential to recoup $750,000 in other costs, but warned it could take up to $1.74 million to pursue legal action.

Mr Kanevsky and Mr Algeri said a pessimistic scenario would see slightly more than $3 million being available to creditors.

Mr Esposito has been contacted for comment.

Andrew Miller

Andrew Miller

is a journalist for Stock and Land
Twitter: @journoandy26

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