Dairy Farmers are owed millions of dollars after National Dairy Products (NDP), a Victorian milk broking business, collapsed and went into administration in November 2016.
Creditors are also owed $6.8 million, with allegations that the company was trading whilst insolvent for several months prior to entering administration.
The company’s director Mr Esposito offered creditors $200,000 under a Deed of Company Arrangement (DOCA), to be shared between non-dairy farmer creditors owed money.
Alternative deals were offered to dairy farmer suppliers. They were offered either the full repayment of the book value of what they were owed over 12 months if they supplied the company with milk or full repayment over 18 months if thy suppliers refused to supply the company with further milk supply.
The dairy farmer creditors rejected the deal, saying it was not credible or practicable. Creditors instead voted to wind up the company and place it into liquidation.
The ABC has reported that the directors continue to live in a multi-million-dollar mansion in Melbourne and a luxury lifestyle to suit it – and dairy farmers are not happy.
The liquidators have said that they will now look to publically examine the directors or former directors and will look for any possible recovery action against the directors and former directors.
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