Overview
Challenges
- Poor harvest impact: The business had ceased trading before our appointment due to a failed harvest caused by diseased seedlings and a subsequent cyclone that hit the Far North Queensland region.
- Existing proceedings: The company had commenced proceedings against a third-party seedling supplier for loss of profits and damages caused by diseased seedlings.
- No sale of production land: The primary production land had been listed by an experienced property agent for over 12 months before our appointment with no result.
Turnaround Plan
Olvera was appointed as voluntary administrators by the director, and this was supported by the first and second ranking secured creditors. Following our appointment, we secured the farm and other assets and organised an urgent asset valuation to establish an informed sale strategy.
The business and assets were advertised for sale, including targeted outreach to our internal network to attract qualified buyers.
Our team also ran a comprehensive sale campaign and negotiated with interested parties to achieve the best possible return for creditors. In parallel, we assessed the damages claim against the third-party seedling supplier, including the potential for assignment as liquidator to preserve its value as part of a broader realisation strategy.
Results
We successfully facilitated the sale of the company’s primary production land, water rights, residential properties, plant and equipment, as well as the transfer of the company’s legal claim for loss of profits against the third-party seedling supplier.
The purchaser was identified through our internal network, and the sale price achieved exceeded the independent valuation. The first ranking secured creditor recovered a significant portion of their debt (approximately $7 million), marking a strong outcome for stakeholders.
Key Drivers of Success
- Timely asset management: Immediate securing of farm assets and urgent valuations from our team set a clear foundation for the sale campaign.
- Effective marketing: Leveraging both external advertising and Olvera’s internal network ensured Bootooloo was exposed to credible and qualified buyers.
- Strong stakeholder support: We collaborated with secured creditors to take decisive action and ensure clear communication throughout the process.
- Comprehensive strategy: The inclusion of the damages claim assessment and potential assignment added further value to creditor returns.
Key Takeaway
This case study demonstrates Olvera Advisors’ experience in the agriculture industry. Our principals successfully managed the sale of Bootooloo Farms’ primary production assets and related claims with strategic thinking and our vast internal networks.
The outcome highlights how restructuring, when done efficiently, can result in a seamless transition for both directors and creditors.
