Partner Article

Rock Farm Dairy talks continue

The creditors of Rock Farm Dalry have met to discuss its future, which depends heavily on the recovery of the company’s debtors.

Substantial debts are still owed to the dairy from its previous customers, and the sale of the company’s assets at Wheatley Hill also remains to be concluded.

Stephen Oldfield, joint administrator and PwC partner, said: “It is clear that Rock Farm Dairy’s financial difficulties were, in large part, caused by a few specific customers not paying their bills over several months prior to my appointment.

“Creditors have been informed that while many of the company’s former customers have settled their bills since our appointment, a small number of customers are still not paying their pre-appointment debts for unknown reasons at present. “

The tolling agreement between the company and UKDS will remain in place, in a move which will ensure that 50% of the company’s original workforce will continue to be employed for the time being. This agreement is due to finish at the end of May, but could be extended by mutual agreement.

Mr Oldfield continued: “We hope to conclude a sale of the company’s assets over the next few weeks.

“Our objective remains to seek a sale as a going concern, where assets remain in the same location therefore preserving higher value.”

The dividend prospects of all the trade creditors, including direct farm suppliers, are dependent on the amount generated from the sale of assets at Wheatley Hill but also from the few recalcitrant customers, who are now being pursued by the administrators.

This was posted in Bdaily's Members' News section by Ruth Mitchell .