04/11/2016 - 12:51

Superfert into liquidation

04/11/2016 - 12:51

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Failed fertiliser supplier Superfert Dongbu has gone into liquidation, 18 months after it had been put into voluntary administration.

Superfert into liquidation
Superfert's failure has affected farmers and unsecured creditors.

Failed fertiliser supplier Superfert Dongbu has gone into liquidation, 18 months after it had been put into voluntary administration.

Business News reported last year that farmers and other unsecured creditors could expect 7 cents in the dollar in a deed of company arrangement in which the major secured creditor, South Korean company Dongbu Farm Hannong, agreed to allow unsecured creditors get the first tranche of payments.

Unsecured creditors were returned around $800,000 when it was executed, or 8 cents in the dollar, while employees were returned around $400,000.

That Doca included provisions to wind up Superfert after that payment had been finalised, with Dongbu Farm Hannong expected to recieve about $900,000, or around 3 cents in the dollar after liquidation.

It had been owed more than $30 million.

On Wednesday, notice was given to the Australian Securities and Investments Commission to wind-up the company.

Superfert entered voluntary administration in May 2015, with a net asset deficit of more than $31 million, while sales had been as high as $82 million annually.

It is understood almost $14 million had been lost by Superfert through a related entity established to sell into the South Australian market, while there had been nearly $16 million of trading losses.

At the time administrators were appointed, almost 200 farming entities were listed as unsecured creditors who had prepaid for fertiliser, the largest of which was owed $260,000.

In total, around $1.6 million was owed to the farmers.

Other unsecured creditors included Qube Holdings and Fremantle Ports.

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