Failed Taieri fertiliser plant for sale

The $1 million Taieri fertiliser manufacturing plant of failed Featherston Resources has been advertised for sale by its liquidators.

In spite of more than $15 million of more than 200 investors' cash being poured into the private company during the past 16 years, it produced and sold only a small fraction of the diatomite mined in the Maniototo, after the $1 million Dukes Rd plant was opened in March 2011.

It went into receivership in January.

Sydney-based liquidators Hall Chadwick have advertised the on-site assets, for converting minerals to powder and pellet form for sale.

Expressions of interest close tomorrow. Since the liquidation proceedings, shareholders on both sides of the Tasman have initiated legal proceedings, which question a $A4.8 million ($NZ5.2 million) bailout offer, and also the actions of company directors leading to the receivership.

The offer, accepted by creditors understood to be owed about $A4 million, leaves nothing for shareholders, and the company ownership goes to a new company.

A hearing was scheduled in the Supreme Court of New South Wales in Sydney last week, but it was understood a decision had not yet been released.

 

simon.hartley@odt.co.nz

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