KONDININ Group CEO Bill Ryan has proved his worth by pulling together a loan deal from the Grain Growers Association to rescue his organisation from a wind-up petition.
The $350,000 on commercial terms from the Dubbo-based Grain Growers, will be used for long-term debt, while $450,000 pledged by Kondinin members Australia-wide will become equity.
This will satisfy pre-conditions for an application to the Supreme Court for winding up orders to be suspended, and for provisional liquidator Dino Travaglini to be discharged.
The not-for-profit company has been operating on eight staff while in provisional liquidation.
Dr Ryan is predicting Kondinin will be operating independently by the end of the month, allowing 20 staff to be re-employed.
The application will be made once proper documentation backing up Kondinin’s ability to pay its debts as and when they fall due is ready, and the court must then hear the matter within 48 hours.
Dr Ryan, who joined the group in January this year, told members earlier this month that Kondinin had been providing a Rolls Royce information service for a Commodore subscription price.
He said that if the group was successful in raising the required capital, it would have a sound base, but would still require “restructuring” to maintain future financial viability.
This would involve a return to the core business of producing the monthly Farming Ahead research publication, he said.
Annual subscriptions will go up at the beginning of the new financial year, most likely to $190 from the current $153 + GST.
Dr Ryan was previously executive manager research and development with the Heytesbury Group.
Two dozen Kondinin staff were terminated when the group went into provisional liquidation on March 17.
