Beston Global Food Company will keep trading for now
More than 150 local dairy processing workers should be able to keep their jobs in Murray Bridge and Jervois until at least February, administrators KPMG say.
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Murraylands dairy company Beston Foods will aim to continue trading for at least four more months while administrators search for a buyer who can keep it afloat.
The company, which went into administration last month with significant debts and cash flow problems, will continue to employ around 160 workers at its Murray Bridge and Jervois factories.
Administrators KPMG had originally been given an October 28 deadline to figure out whether Beston could be saved.
But, at a Federal Court hearing last Thursday, they were able to get an extension until February 28.
In a letter to creditors – people who are owed money from before Beston’s collapse – KPMG’s Tim Mableson said the extra time would allow the administrators to keep searching for a saviour.
“The reason for the extension … is to increase the chances of a sale of the business as a going concern, and/or a prospective purchaser putting forward a proposal,” he said.
If a buyer cannot be found, Beston’s creditors will have to choose one of three options early next year:
- Hand the company back to its directors
- Place it in liquidation: sell all its assets to generate as much cash as possible for creditors
- Enter a deed of company arrangement, an alternative plan to maximise the chances of the company continuing
In an earlier letter, Mr Mableson advised that the first option was not viable.
A first meeting of creditors was held on October 2, and the administrators announced on October 10 that they had secured enough funding through NAB to keep the company operating for now.
Shares in the Beston Global Food Company remain suspended on the Australian Stock Exchange.
