\u201cSouth Pacific Growers Ltd received a $13 million Government loan from the North Island Weather Event Fund in December 2023,\u201d an MBIE spokesman said.<\/p>\n
\u201cThe fund was set up specifically to support recovery in the wake of Cyclone Gabrielle.<\/p>\n
\u201cIt was designed to help businesses get back on their feet and re-engage with commercial lenders.\u201d<\/p>\n
With respect to repayments, he said the loan terms were \u201ccommercially sensitive\u201d.<\/p>\n
The appointed receiver, BDO Auckland, confirmed that from what it could see, none of that loan had been repaid.<\/p>\n
The $13 million debt has been included under unsecured creditors in the receivers\u2019 report.<\/p>\n
\u201cIt appears unlikely that any funds will be available for distribution to unsecured creditors,\u201d the report stated.<\/p>\n
Sykes has been contacted for comment.<\/p>\n
The company was operating from 2020 until it ceased trading recently.<\/p>\n
It did not own any land, but leased 32 orchards totalling 191ha.<\/p>\n
\u201cThe company suffered damage to orchards and equipment due to Cyclone Gabrielle [in February 2023],\u201d the receivers\u2019 report read.<\/p>\n
\u201cThe director made efforts to raise capital and obtain recovery funding, to restore affected orchards and sustain the company through a recovery period towards full production.<\/p>\n
\u201cHowever, funding obtained and crop proceeds were insufficient to operate the company effectively and as the company\u2019s cashflow problems worsened, it became unable to pay its debts when due.<\/p>\n
An overseas creditor (and part shareholder of the company), Pacific Wick Ltd, is owed almost $6m and appointed the receivers.<\/p>\n
Other creditors include well-known Hawke\u2019s Bay companies Bostock NZ (owed about $580,000) and Rockit (owed over $2m), according to the report.<\/p>\n
Employees are owed about $5000 in accrued annual leave.<\/p>\n
The report did not include the value of the company\u2019s assets, which can help pay debts.<\/p>\n
\u201cAt this stage, it appears likely that after realisation of all assets, shortfalls will remain owing to secured and preferential creditors,\u201d the receivers\u2019 report stated.<\/p>\n
Assets to be auctioned<\/p>\n
An auction has been set for Thursday, September 17 to sell the company\u2019s assets.<\/p>\n
That includes the likes of tractors, trailers, sprayers, forklifts and other goods.<\/p>\n
The auction will be run by Ritchie Bros through Ironplanet.com.<\/p>\n
Hawke\u2019s Bay grows about two-thirds of New Zealand\u2019s apples, most of which are exported overseas.<\/p>\n