A MEETING of Special One Grain Accumulator’s creditors in Dubbo yesterday has voted to put the company into liquidation, with unsecured creditors estimated to get 9 cents in the dollar for the $10.3 million they are collectively owed.
Special One’s board voted last year to put the company into voluntary administration , and Andrew Spring and Trent Devine of Jirsch Sutherland were appointed administrators on 18 October.
Last month, they provided Special One’s creditors with an outline of the company’s financial situation.
It includes a $5.6 million debt to NAB as the secured creditor which looks likely to be paid in full when the company is wound up.
With proof of debt totalling $1,659,921, Walgett Special One Co-operative is at the top of the unsecured creditors list.
It is followed by Allied Pinnacle with $748,000 owing, and Louis Dreyfus Company Australia, which is owed $593,491.
Other unsecured creditors include Australian traders, millers and growers.
“We’re managing the wind-down of the company’s affairs, and we’re going through the process of maximising the value that can be returned to creditors,” Mr Spring said.
“There’s still a fair bit of work to do.”
A committee of inspection of four parties, all unsecured creditors, was formed at yesterday’s meeting to provide guidance to the liquidator.
The administrators’ report said Special One Grain had a significant trading loss in the year to June 30, 2018, and declining working-capital ratios, both indicators of insolvency.
Special One’s directors are Walgett farmers James Moore and David Berrell, Walgett farmer and agronomist Greg Rummery, and Cryon farmer Fiona Denyer.
They advised the administrators the current drought, legacy issues from Special One’s 2010 wheat and chickpea pools, trading losses and breaching of its banking covenants were reasons for its insolvency.
The administrators have also cited under-capitalisation, and shrinking margins due to market forces as contributing to the company’s inability to trade on.
The first meeting of creditors was held on 30 October.
On 14 November, the Federal Court of Australia ordered the extension to 28 February of the voluntary-administration convening period.