Receivers go to court to remove Crafar

Allan Crafar may be legally forced from his property. Photo / Christine Cornege

Court action is underway to remove the former head of New Zealand's biggest private dairy operation from his property.

Receivers KordaMentha say they filed court papers last week to remove Allan Crafar from his Reporoa property, after his dairy empire went into liquidation owing more than $200 million to PGG Wrightson and banks last year.

But Crafar said he was yet to see any papers when contacted by nzherald.co.nz this afternoon.

KordaMentha said Crafar, as the director of Plateau Farms Limited (in receivership), no longer controlled the properties and therefore had no legal right to be living there.

Crafar has previously said he will remain on family land until he is forced out and today reiterated he would defend any court action brought by the "pack of goons" who "are trying to throw me out of my own home".

Crafar earlier rejected an offer from the receivers for six months' free rent in Rotorua, if he left the farm on April 9.

Allan's brother Frank told KordaMentha he would move, but only if he was paid the six months' free rent offered by the receivers as a lump sum. Allan's son Robert was also understood to be residing on the property.

KordaMentha said it required the properties for current and incoming staff "so that we can continue to operate them effectively".

Litigator Michael Arthur, of Chapman Tripp, said he expected the whole process could take two to three months and was likely to be heard in a High Court.

Crafar would be given an opportunity to respond to the papers, before an application was heard in court where he would be required to spell out why he should be entitled to remain on the land.

If Crafar chose to defend court action, a further court date would then be set.

Chinese dairy investor Natural Dairy has a conditional sale agreement in place to buy 16 farms previously owned by the Crafar family, which range in size from 128ha to 1750ha.

That agreement was subject to Overseas Investment Office approval and could be overtaken by a better offer.

Tenders for the farms close on June 23.

Asked whether receivers would accept an offer from Crafar, KordaMentha said it would look at all offers.

Crafar said last week he was considering "three very good options" in an attempt to trade his way out of debt.

He said he hoped to be able to present those offers in the coming weeks.