Crafar Farms put into receivership

Alan Crafar. Photo / Herald on SUnday

New Zealand's largest family owned dairy business, Crafar Farms, has been put into receivership, Korda Mentha said in a statement.

Korda Mentha's Michael Stiassny and Brendon Gibson have been appointed receivers.

Stiassny said the initial priority was working with existing management to assess the situation and address the financial and operational problems.

Agriculture Minister David Carter ordered MAF to inspect Crafar Farms last week in the wake of revelations on interest.co.nz about animal neglect on one of Crafar's farms near Benneydale in the King Country.

Crafar Farms owes its banks Westpac, Rabobank and PGG Wrightson Finance around NZ$200 million. Crafar Farms is trying to sell its properties has a single group and owner Allan Crafar has said it is unlikely his family will be left with anything after the sale.

"We will be working with MAF to ensure this investigation is completed as soon as possible. If any issues are identified then we will look to address them to ensure full compliance with responsible farming practises," said Stiassny said.

"We will be doing our best to ensure it is business as usual for the farms as we work to assess the situation," he said.

Stiassny is due to hold a news conference at 5pm today.

INTEREST.CO.NZ