Wednesday, May 22, 2024

Happy Valley gets more time to explore deals

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Creditors vote to allow administrators to dig down into offers.
Happy Valley had planned to build this factory in the Waikato town of Ōtorohanga, but the project was stalled by a lack of capital.
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Happy Valley Nutrition’s creditors have given the administrators an extra month to see if there is any substance in potential deals to save the embattled wannabe milk processor.

The Australian stock exchange-listed company planned to build a dairy factory in the Waikato town of Ōtorohanga but ran out of capital.

Those owed money by Happy Valley gathered last week to vote on whether to tip it into liquidation.

McGarthNicol’s Andrew Grenfell and Kare Johnstone, who were appointed administrators in July, had recommended liquidating the company because no Deed of Company Arrangement (DoCA) had been proposed.

However, in the days before their administrators’ report was released, the pair received two expressions of interest to potentially recapitalise the business, which could have resulted in a DoCA.

At the latest meeting in early August, creditors voted to adjourn the meeting for 30 working days to give the administrators time to work through the potential deals.

Grenfell reportedly said on Monday that he couldn’t disclose who the expressions of interest were from.

However, the extension was the maximum under the legislation, and during that time, they’d be working with the parties to try to progress their expression of interest and come up with something “more certain”, he said.

The next creditors meeting will be held on September 21 in Auckland.

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