Administrators of Tamar Valley Dairy have been granted extra time to explore the "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 $9 million in debt. It is believed to have suffered cash flow problems after building a new factory.
Administrators Deloitte Restructuring Services said a second creditors' meeting would now be held by the end of February, 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.
At the time of its collapse, the administrator said the 17-year-old Tamar Valley Dairy operated in an "extremely competitive sector" and had been "challenged by a slowdown in sales and pressure on margins".
The proposals to revitalise the business come as a bidding war has broken out for control of Warrnambool Cheese and Butter, with three competing offers for the company from local and overseas bidders, with speculation of further bids being received.