Cashmere Pacific in receivership

Press, 29 January 1988, Page 20

Cashmere Pacific in receivership

PA Auckland Goat farmer Cashmere Pacific went into receivership yesterday, victim of collapsing goat prices and an expensive fight over a subsidiary, according to one of the receivers. Cashmere Pacific’s bankers, Westpac, have appointed Mr Kim Powell and Ms Adrienne Stone of accounting firm Ferrier Hodgson Hogg Young Cathie as receivers. The receivership comes before Cashmere Pacific celebrated its first anniversary of listing on the stock exchange last April. Mr Powell said one of Cashmere’s subsidiary companies, Animal Enterprises, contributed to Cashmere’s demise. When the National Bank put Animal Enterprises into receivership in November .last year,

Cashmere chief executive, Mr Ray Ah Chee, said the bank had acted negligently. Cashmere said the troubles with Animal Enterprises cost almost S7M and threatened legal action against both the bank and Animal Enterprises’ previous owners, the Dairy Board. “The combined effect of this alleged loss together with the severe downturn on goat prices precipitated the insolvency of the company,” Mr Powell said. Mr Powell said last night he was unable to comment on whether the legal action would continue. “We will have to explore the merits of the action and make a decision,” he said. Mr Powell described Cashmere Pacific as “one op the more successful

publicly listed goat specialist operations.” He said the company owned a substantial herd of goats of about 37,000 making it the largest goat herd in New Zealand and a contender for the world title. He said the receivers considered that taking a “fire sale” approach to selling off the herd would damage the New Zealand goat industry. “Accordingly a separate company has been formed as a wholly owned subsidiary of Cashmere Pacific to acquire and manage the herd in the best manner possible,” Mr Powell said. By forming a separate company the goat stud will be able to trade “without the stigma of receivership,” said Mr Powell. Other assets) of the, company will be .sold off/ lf>