Tomato farm in $30 million debt

ADMINISTRATORS called in to salvage debt-ridden tomato farm SP Exports have revealed the company owes more than $30 million to creditors and $500,000 in employee wages.

KordaMentha administrators Ginette Muller and John Shanahan were called in last Friday by farm director Andrew Philip, who cited two spray-drift events, the 2010/11 floods and the extended run of low pricing as contributors to the company's demise.

KordaMentha yesterday released a statement confirming SP Exports owed unsecured creditors about $12.5 million and secured creditors about $18 million.

Employees are owed in excess of $500,000 in wages.

But KordaMentha said it was unlikely enough assets could be sold to cover the money owed to the employees and unsecured creditors.

Sixty employees were terminated on Friday, with skeleton staff remaining on site to assist the administrators in getting stock to some of the farm's suppliers.

Mr Shanahan said the farm was currently trading in a "limited capacity" with workers who were "ordinarily employed by SP Exports".

"We're reviewing the crops that are in the ground as to the viability," he said.

A Deed of Company Arrangement will soon be received, which will entail that all fixed and floating assets are realised and paid to relevant secured creditors, and Mr Philip will refinance the property to reduce secured creditor debt.

An insurance claim relating to the spray drift events will also be pursued.

A creditors' meeting will be held next Wednesday at the Burnett Riverside Motel from 11am.