Industry — Agriculture

Red Hills Farm

Hay Farm / Processing Plant

Please note, names have been changed to maintain client confidentiality

The challenge

The company owned and operated a hay farm/processing facility near Griffith, New South Wales.  A lender had loaned money to the company to buy the land, plant and equipment. Following poor rainfall, the farm yielded  a poor crop and was unable to generate sufficient revenue to meet its loan repayments to the lender.

The response 

We were appointed as Receiver and Manager to the company and sought to sell the business (including land, machinery and export licence). The assets attracted the interest of overseas buyers and we were required to seek the consent of the Foreign Investments Review Board and Department of Agriculture for the sale and transfer of trading licences.

The result

The assets were sold to a foreign buyer and the business recommenced trading and has since expanded operations. Majority of the secured lenders’ debt was repaid.