Overseas delays blamed for Caprana failure

Press, 31 August 1989, Page 38

Overseas delays blamed for Caprana failure

PA Auckland The listed goat breeding company, Caprana Corporation, hoping to arrange a major overseas deal, has run out of time and been placed in receivership. Caprana has lately been the subject of winding-up petitions in the High Court at Auckland, where Moorefield Wandarra Angoras, Ltd, is claiming a debt of $40,000, and Fibre Corporation, Ltd, a Scottish company, is claiming $18,364. The managing director, Mr Dannie Tindall, has been away for some time aiming to conclude a goat breeding programme in France. In its half-year report to December 31, released on May 2 this year, Caprana said most of that time was spent establishing the company’s operation in France, based on embryos supplied from Zimbabwe.

No profit from the sales of the embryos had been included in the result (a

loss of $591,000) as the final structure of the French operation was not complete. The Caprana directors said that the receivership action arose directly from delays in concluding the French initiative and the inability of the company in its present form to secure further funds to support the work.

The directors asked de-benture-holder Rural Banking and Finance Corporation to appoint the receivers, Messrs Peter Howells and Richard Agnew, of Coopers and Lybrand, Auckland.

In its statement to the Stock Exchange, Caprana said that discussions were being pursued with international interests about continuing the project in France and other business strategies begun by the company.

Mr Agnew indicated that should these deals come through then the company could easily come out of receivership.

The Caprana directors said they were disappointed that projects had been delayed to the extent that receivership was necessary to protect the interests of creditors.

Adding to Caprana’s problems was that Angora International, Pic, based in England, had failed to make progress with its own management and trading responsibilities.

The directors said Caprana’s investment was greatly reduced in value and this had also affected its development proposals in Europe.

As outlined in the annual report for the year ended June 30, 1988, Caprana invested $1,379,000 in Angora International which was floated in October, 1987. Caprana itself was floated in May, 1986, to operate as a stud angora goat and cashgora goat breeding company.

Mr Tindall said at the annual meeting last December that the com-

pany had 400 pure-bred angoras in Zimbabwe and a further 390 in New Zealand, in addition to several hundred boer goats in Zimbabwe and several hundred cashgora in New Zealand. He said Caprana was looking to have one million goats under its control (mohair and cashgora) by 1992., The company had planned a strong expansion in Europe and had set up Caprana SA and an office in France. Together with the French Government, Caprana SA was working on a package to encourage farmers to turn to mohair. Mr Agnew said the first step by the receivers was to identify the assets, and they had asked for a statement of affairs from the directors. "We have only been involved for a day and it is a little early to decide whether Caprana can keep trading or not,” he said.