ŌTOROHANGA’S multi-million dollar milk treatment plant will not now be built by Happy Valley Nutrition. GRAPHIC SUPPLIED
Happy Valley Nutrition the company behind the stalled dairy factory development at Ōtorohanga, has gone into voluntary administration.
Andrew Grenfell and Kare Johnstone of McGrathNicole Auckland have been appointed administrators.
In announcing the decision to go into voluntary administration, board chair Kevin Bush expressed his extreme disappointment in a notice to the Sydney Stock Exchange, and blamed nearly three years of Covid lockdowns which impacted the board’s ability to progress the project.
“Post-Covid saw a material change in the dairy industry, particularly in HVN’s original ambition within the infant formula market, which is now seeing the negative impacts on other industry players,” he said.
“Our ability to identify and pursue a dairy protein strategy in the last eight months saw a significant amount of interest and we were able to secure offtake agreements as previously announced.”
As a result, HVN had several investors undertake due diligence and negotiations from April until Friday last week.
Unfortunately, the current market conditions of increasing high interest rates, tightening milk supply and the continued emergence of China domestic milk supply left HVN unable to secure the necessary funding to continue at this point.
Since incorporation in April 2016, HVN achieved several milestones completing site acquisition, a water supply licence, consents to build the facility and gaining approvals for air stormwater and wastewater discharges and water supply to operate the as yet unconstructed plant.
A creditors meeting is scheduled for July 18. HVN has 228,454,546 shares on issue and a mortgage of $10.75 million that matures on August 6.
Non-executive director Grant Horan has resigned, leaving David McCann and Kevin Bush on the board.
