'Encouraging proposals' for collapsed Tamar Valley Dairy
Administrators of Tamar Valley Dairy have been granted extra time to explore "encouraging" proposals received that could salvage the Tasmanian dairy company.
Tamar Valley Dairy, which supplies branded products to Coles and no-name products to Aldi supermarkets, collapsed in September with an estimated $9million in debt. It is believed to have had cash flow problems after building a new factory.
Administrators Deloitte Restructuring Services said a second creditor's meeting would now be held by the end of February 2014, allowing it extra time to assess options for the business.
Options include "proposals from interested parties for either a recapitalisation of the company (including a possible deed of company arrangement by the directors) or sale of the leasehold business."
The directors are Guaraci Matteo and Teresa Matteo.
"The level of support continues to be very encouraging and we expect to be in a position to provide all stakeholders with more certainty over the coming weeks," said Deloitte Restructuring Services partner Tim Norman.