Receivers called to Botry-Zen

Botry-Zen Ltd has asked its banker, Bank of New Zealand, to appoint receivers.

The company held a board meeting this afternoon after failing to raise a minimum $1.5 million in a share purchase plan.

The Dunedin-based company was formed in 2001 to research and commercialise biological controls for the grape-wasting Botrytis cinerea fungus.

Horticulture Food Research Institute of New Zealand Ltd, Winegrape Tech, and Zenith Technology Corporation Ltd were involved in the technology development.

The company encountered production problems in 2008 and a rescue package was negotiated at that time which included a $1.2 million overdraft facility with the BNZ. There were significant board changes at that time.

Botry-Zen general manager Stephen Lorimer said that the company had made strong progress in 2009, especially in the United States where it gained state registration in California and was seeking similar registration in Oregon and Washington.

Dr Lorimer said customers, especially in Europe, were becoming very green-focused and wanted residue-free and sustainable products.

Botry-Zen needed to purchase four new fermenters at its Dunedin plant, but ultimately wanted to move away from supplying international markets from its New Zealand factory.

- NZPA