Creditors of failed Dunedin fertiliser company Featherston
Resources are to have a second meeting on whether to accept
or reject a $A4.8 million ($NZ5.2 million) bail-out offer.
The case of Featherston, which had been processing diatomite
at its plant near Mosgiel, is
to come before the Supreme Court of New South Wales in July.
Its directors are accused of breaching ''general law and
fiduciary duties'' to Featherston.
Facing the allegations are Featherston's managing director
and director Emma Weston and shareholders and directors Simon
Kember and Timothy Goodacre.
Featherston spent about $15 million of funds from more than
200 shareholders over 16 years but after it opened in early
2011, trading was nowhere near expectations and it was placed
in receivership in January, owing an estimated $5 million to
Yesterday, Auckland administrator Rodgers Reidy advertised a
second meeting for creditors, next Thursday in Auckland.
As with the first meeting and vote, creditors may opt to
accept the bail-out proposal, to get some or all of their
money back. However, that offer cedes control of Featherston
to another company and shareholders are left out of pocket.
Rodgers Reidy joint administrator Paul Vlasic said yesterday
the Auckland meeting would offer creditors a ''varied deed of
company arrangement'' - Australian company Plaman Group's
$A4.8 million bail-out offer, containing only ''subtle
He was unable to release offer details, as is was a document
for creditors only.
The legal issues are multi-faceted, with court jurisdiction
open to interpretation; it is an Australian company operating
in New Zealand, a separate receivership is under way under
New Zealand legislation, and shareholders in Australia are
taking action against Featherston's former directors and also
want the Plaman bail-out offer reviewed.
Mr Vlasic said the litigation in the Supreme Court in
Australia was separate from the receivership.
The creditors, who have already voted to accept the Plaman
Group offer, will decide next week whether to accept the
revised offer. If they reject it, Featherston could be wound