A North Otago irrigation company in receivership owes more than $50 million and creditors include a government entity and the Waitaki District Council, a new report has revealed.
And the first administrator's report into Kurow-Duntroon Irrigation Company Ltd (KDIC) also warns the company's 70 shareholders could be put under "substantial financial pressure" if a claim of liability is taken out against them.
Last month, KDIC was put into receivership and voluntary administration by the government-owned Crown Irrigation Investments Ltd.
It came after an adjudication process found KDIC was liable to pay Monadelphous about $12.8 million following a dispute over a $45 million project the engineering group was undertaking for the company.
KDIC had been undertaking major upgrades to its irrigation scheme, which involved laying 59 km of piped irrigation infrastructure that would double the irrigation area covered by the scheme from just under 2000ha to 4000ha, with a capacity to expand to service 5500ha.