A Canterbury high-country farm is under a receivership sale after two honey and farming-related businesses folded owing creditors $21.8 million.

The 3680ha high-country run being sold by receivers of Glenburn Green Ltd in a deadline sale by September 30 comes with an airstrip, hangar and hunting, recreation and tourism attractions in Lees Valley.

Another farm sale is approaching as a result of the companies’ collapse.

This follows Teneo Financial Advisory New Zealand insolvency practitioners Malcolm Hollis and Richard Nacey being appointed by Bank of New Zealand (BNZ) as receivers for Springbank Honey Ltd and Glenburn Green Ltd in July.

Springbank also went into liquidation last month.

Both companies are owned by directors Stephen Brown and Tracy Brown.

A first receiver’s report released this week found Springbank’s debts were estimated to be about $12.6m and Glenburn nearly $9.2m.

Springbank owes about $9.5m to BNZ as the first ranking secured creditor, more than $1.7m to 24 other secured creditors, $395,000 to Inland Revenue, $37,000 to staff and nearly $880,000 to unsecured creditors.

Glenburn’s debt includes more than $4.4m to BNZ, $4.7m in party related loans and $20,000 to unsecured creditors.

After examining Springbank’s financial position the receivers decided it was uneconomic to continue trading the main honey business, which had produced and processed honey and carried out beekeeping duties.

An on-site cafe known as The Hive was closed in July.

A valuation of Springbank assets including honey stock and land and buildings for a Cust property was largely withheld in their report as the business is also going to be sold.

Property valuations are being obtained for the Cust farm, honey processing plant, beehives and other equipment.

Initial records were provided, but an independent inspection of hives was carried out after unsuccessful requests for complete information on their numbers and locations. This has identified discrepancies between records and stock located.

The receivers said a sale process for Springbank’s Cust property and its assets would begin after the valuation was completed.

“The receivers are continuing to assess the most appropriate method of realisation for Springbank’s remaining assets [with] the objective of maximising recoveries for creditors.’’

The receivers wound up farming activities at Glenburn.

Glenburn livestock, estimated in company records to be worth about $880,000, were sold, while other assets including land and buildings at the Lees Valley property were also withheld during the sale process.

The receivers said offers would continue to be accepted for the Glenburn farm to the deadline unless it was sold beforehand.

Funds could yet be available to preferential creditors for both companies, they said.

“The receivers also expect there to be sufficient realisations in Glenburn to have funds available for distribution to unsecured creditors, although this remains dependent on the outcome of the property sale. There are unlikely to be sufficient funds available for a distribution to unsecured creditors in Springbank.’’

Mr Brown was ordered by the Ministry for Primary Industries to burn thousands of bee boxes after American Foulbrood was identified through testing in 2024.

The receivers said an authorised inspector assisted with inspecting hives for the disease. — Allied Media