Creditors to vote on firm’s future

A section of Kurow Duntroon Irrigation Company’s pipes before they were moved underground. PHOTO:...
A section of Kurow Duntroon Irrigation Company’s pipes before they were moved underground. PHOTO: REBECCA RYAN
A meeting has been called by the administrators of a North Otago irrigation company to decide on its future.

Last month, the Kurow-Duntroon Irrigation Company Ltd (KDIC) was put into receivership and voluntary administration by Crown Irrigation Investments Ltd.

KDIC had been undertaking a $45 million upgrade to the Kurow-Duntroon irrigation scheme.

The project, which began construction in 2019, involved laying 59km of piped irrigation infrastructure that would double the irrigation area from just under 2000ha to 4000ha, with a capacity to expand to service 5500ha.

In August 2019, KDIC was issued an abatement notice by the Waitaki District Council because a section of the new pipeline blocked the view of the Waitaki River west of Kurow, which breached its consent.

Work then had to be carried out to move the section underground and out of sight.

Since then, KDIC and the project’s designer Monadelphous have been involved in a dispute over who is liable for the increased cost caused by the consent breach.

Yesterday, a public notice was issued stating that a watershed meeting had been called by joint administrator Colin Gower, of BDO Partners, to be held next week.

The notice said the meeting would consider the administrators’ report and opinion about the company’s business, property, affairs and financial circumstances.

Creditors would also consider and vote on whether the company should execute a deed of company arrangement, whether it should be placed into liquidation and whether the administration should end.

Late last month, the first meeting of creditors was held in Oamaru.

Mr Gower did not respond to requests for comment yesterday.

The meeting will be held next Tuesday in Christchurch.