The room was filled with around 130 shareholders who were given a sombre sales pitch by chief executive Willie Wiese and chairman Mark Wynne.
Alliance Group faced debts to the tune of $188 million to $200m due on the December 19, with no extensions or refinancing available for the company.
The company had fallen on hard times after declining equity, a devastating 25% drop in meat price in 2022 over a six-week period, as well as other difficulties, although a recent turnaround now had the company profitable yet again.
Mr Wynne told the crowd even though the profits were back, the banks were not hearing it and so they went on an "extensive" search for a potential partner — and found one.
Dawn Meats Group, an Ireland-based meat processing company, has proposed purchasing 65% of the company for $250m.
This company, Mr Wynne said, reflected the values and culture of Alliance.
The sale would allow it to repay the debt, with $40m for investment and a payout structure for the co-operative, as well as retaining the constitution and veto rights for certain decisions.
Mr Wynne stressed the decision was a pragmatic one based on time constraints and a small window, it was tax efficient and would help to keep the company above board.
If the vote, which required over half of the 75% minimum participation of shareholders, did not pass, Mr Wynne and Mr Wienne would still work hard to keep the company afloat, although consequences could be dire with potential forced receivership and a sale of assets at below market price.
Shareholders were able to vote on the proposal immediately, with the final date set for the October 20, although some in the room expressed different ideas for how to manage the issue.
Questions from the crowd wondered how a profitable business could not seek financing, why a sale was appropriate and what the company would look like moving forward.
Mr Wynne said the board and executive team had exhausted every measure, turning to banks, overseas financiers, even to the government for help, but it was the same outcome every time — no takers.
An alternative was proposed from the crowd, as Glenary Station owner Dave Pinckney and Andrew Morrison called for the shareholders to retain control of Alliance.
A capital injection of $5 per stock unit from shareholders to raise $60 million in a year, with other debt funding, asset sales and capital injection in the following years to raise the funds, would help to keep the company entirely based in New Zealand.
Mr Morrison challenged the accounting of Alliance Group, asking them to share their numbers and compare, although he and others were very complimentary of the group for their 18-month turnaround.
In response, Mr Wynne said the best possible case was for the shareholders to put in enough to cover the $188m.
No matter what, he and the others would commit to the decision of the shareholders, he said.
Environment Southland councillor and farmer Jeremy McPhail spoke to his desire to front up and put money in, having started a beef operation on his farm as an investment for future generations.
Cr McPhail said after all the hard work to return to profit and excitement about the upswing, all of a sudden it was a call to sell.
He believed the company could still be salvaged, although it might be difficult.
"I’d be keen to front up.
"It’d be like a marriage. There might be a few nights sleeping on the couch, in context, but if you’ve got a long-term vision of farming, I’d challenge the outcomes," he said.
