The administrators of Tasmanian yoghurt company, Tamar Valley Dairy, have been given more time to explore proposals that could save the company.
Deloitte Restructuring Services Partners Glen Kanevsky and Tim Norman, are seeking to restructure, recapitalise or sell the business which went into voluntary administration in September when it struck cash flow problems after building a new facility.
The second meeting of creditors was due to be held tomorrow, but the administrators have been granted an extension until 14 February 2014 by the Supreme Court of Victoria.
They said they needed the extra time to assess 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.
“Our application to the Court for an extension of the convening period was unanimously supported by the Committee of Creditors. In our view, disclosing the current status of offers and our negotiations with interested parties may prejudice the process,” Glen Kanevsky said.
“We are confident of achieving an overall positive outcome, but there are still some elements of the final structure of any transaction that need to be resolved before we can fully update creditors.”
In the interim, Kanevsky said, the administrators are continuing to trade the business with the on-going support of the company’s customers, suppliers, financiers and trade unions.
Tamar Valley Dairy supplies branded and private label yoghurt products to supermarkets including Coles and Aldi.
Norman said: “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”.
The yoghurt company's administrators have been granted an extension in court.
