Receivers called into McVitty dairy farms and Patoka Dairies (Update 2)

The BNZ has called in Maurice Noone and John Fisk from Pricewaterhousecoopers as receivers for Patoka Dairies Ltd and McVitty Properties Ltd, both large dairy farming groups in the Manawatu and Hawkes Bay. (Updates with PwC confirming BNZ is the bank involved, details of PwC's plans and McVitty's convictions) Pricewaterhousecoopers announced the receiverships and confirmed that BNZ was the bank. Patoka and McVitty Properties have 6 dairy farms, two grazing properties and two beef properties.

Maurice Noone later told Interest.co.nz McVitty was owned by Bob McVitty, while Patoka was controlled by McVitty. Noone said McVitty would not have any involvement in the business in the future. PwC wanted to reassure staff it had no intention to launch any firesales or immediate cutbacks and would instead take a year or two to inject value back into the assets, some of which were farm conversions that had yet to be completed, Noone said. McVitty was convicted in 2008 of obstructing a MAF inspector after an incident where McVitty shot a sick cow (pictured above). Here's some details of the incident and McVitty's use of a shotgun.

The first the investigator knew of McVitty's presence was being approached directly by an angry farmer with a closed, loaded, single barrelled shotgun. McVitty's silence made the investigator extremely anxious about his safety. McVitty then stormed directly past the investigator and in a deliberate and wilful act of rage shot the cow despite the investigator's protestations. Defendant McVitty then stated "well it's dead now. It's all over and you can get off my property you're trespassing". He further stated that a vet was not welcome either.

McVitty also clashed in a FairGo programme with the widow of a murdered Onga Onga man after McVitty failed to pay a NZ$66,000 debt, Hawkes Bay Today reported. McVitty has also received infringement notices from the central North Island Horizons Regional Council over effluent discharges onto paddocks. Here are the full statements below from PwC. I welcome any more detail informed readers might be able to provide in the comments.

PricewaterhouseCoopers partners Maurice Noone and John Fisk were appointed receivers of Patoka Dairies Limited on 16 March, 2010. Mr Maurice Noone said the company appears to have over extended itself and has not be able to secure the necessary funding to complete certain development activities and to fund current operations and the projected debt levels. “As you can imagine, this is a last resort following extensive discussions between the parties, and is as a result of them failing to reach an acceptable position for each.” “The initial priority is to work with key stakeholders to address financial and operational challenges. However, it should be noted that there is currently a plan for the completion of the development of these properties, and subject to our review of this, we will be working closely with the bank to secure the necessary funding to enable it to be implemented.” Furthermore, Mr Noone states that “As receivers of Patoka Dairies Limited, we understand that such a situation can cause uncertainty, and accordingly we will work as quickly as possible to complete the restructure plan and to secure funding to complete the planned developments and to support ongoing operations. During this period we are adopting a “business as usual” approach and all employees will be retained whilst we work through and develop our strategy.” In the meantime, Mr Noone urges all stakeholders and interested parties to be patient: “We will provide a report as soon as we possibly can but we recognise this will take some time. Anyone with concerns or queries should contact PricewaterhouseCoopers in the first instance.” PricewaterhouseCoopers partners Maurice Noone and John Fisk were appointed receivers of McVitty Properties Limited on 18 March, 2010. Mr Maurice Noone said the company appears to have over extended itself, and has not be able to secure the necessary funding to fund current operations and current debt levels. “As you can imagine, this is a last resort following extensive discussions between the parties, and is as a result of them failing to reach an acceptable position for each.” “The initial priority is to work with key stakeholders to address financial and operational challenges. However, it should be noted that there is currently a preliminary plan for the restructure of the Company, and subject to our further review of this, we will be working closely with the bank to secure the necessary funding to enable it to be implemented.” Furthermore, Mr Noone states that “As receivers of McVitty Properties Limited, we understand that such a situation can cause uncertainty, and accordingly we will work as quickly as possible to complete the restructure plan and to secure funding to complete this. During this period, we are adopting a “business as usual” approach and all employees will be retained whilst we work through and develop our strategy.” In the meantime, Mr Noone urges all stakeholders and interested parties to be patient: “We will provide a report as soon as we possibly can but we recognise this will take some time. Anyone with concerns or queries should contact PricewaterhouseCoopers in the first instance.”