Saturday, November 22, 2014
United Dairy Power In Receivership
Wed., November 19, 2014
The parent company of Australia’s largest privately owned milk processing company, United Dairy Power (UDP) has been placed in receivership after its banker moved to remove its board and appoint a new CEO to manage its debts, The Australian reported. Insolvency firm PPB and the dairy company’s financier, Rabobank, appointed Marcus Derwin as managing director of Five Star United Food — which controls UDP — last week on the same day the dairy company was placed in receivership. It is understood the firms involved wanted to talk to the farmers that dairy supply the group before the news was made public. The receivership is unusual in that UDP and its subsidiaries will continue trading, while Mr Derwin will work to stabilise the parent company. Greg Quinn, Partner at PPB Advisory said: “The priority since our appointment has been to support UDP management and all its stakeholders including suppliers, customers and employees to stabilise the business. This has been successfully achieved and we’ve been encouraged by the positive response from key suppliers and customers of UDP. “UDP plays a key role in the local dairy industry, and through our appointment, we will endeavour to ensure that it continues to do so in the future.” The news comes only nine months after Hong Kong businessman William Hui paid about $70 million to take control of UDP from its founder Tony Esposito.