BAILOUT: Will the State be asked to help Mossman Sugar Mill survive?
RESCUE PACKAGE
The State government and the administrator appointed to the Mossman Sugar Mill and its associated companies are both remaining tight-lipped over whether a financial ‘rescue package’ might be pursued as an option to keep the Mill from closing down.
The companies which run the Mill and the ‘bio precinct’ next to it were placed into voluntary administration on Monday after crucial board and executive meetings.
After Newsport approached the administrator, John Goggin of Worrells Cairns for direct comment on the appointment, the firm put out a media release saying, “the companies are continuing to trade during the voluntary administration period in order to complete the 2023 cane crush season.”
The release added, “at the date of administration appointment, the group had approximately 130 full time and casual employees.”
Mr Goggin was quoted as saying: “The administration process is in its infancy and we are working hard to immediately establish the group’s financial position, including options for the future of the respective businesses and quantifying creditors’ claims, with the assistance of the directors and the senior staff.
“We are conscious of the impact the appointment will have on everyone involved and the wider Mossman community.”
Meanwhile, the state government has released its first official comments since the Mill and the other companies went into voluntary administration.
“The Department of Agriculture and Fisheries (DAF) understands the uncertainty created for growers and the wider community following news that Far Northern Milling has gone into voluntary administration,” a spokesperson for DAF said in a statement sent to Newsport.
“DAF will work with the administrators to get the best possible outcome for the broader community and growers who have invested in the 2024 season crop,” the spokesperson said.
“The Queensland Government has committed $22 million in support to Far Northern Milling and related entities since 2019.
“Questions about the company’s ability to facilitate the 2024 crush should be directed to the administrators.
“Mossman has been a sugarcane town for 130 years. If the Mill were to close, it would have a significant impact on the growers, mill employees and the broader community.
“DAF is currently undertaking some trials of potential rotation or alternative crops and has contracted a review of the potential for environmental markets to provide additional or alternative income for growers.
“If the Mill were to close, the Queensland government would provide appropriate support under the Worker Transition Scheme and rapid response,” the DAF spokesperson concluded.
Mr Goggin was appointed administrator of the following companies that comprise the “Daintree Bio Precinct Group”:
• Daintree Bio Precinct Ltd;
• Far Northern Milling Pty Ltd t/as Mossman Mill;
• Far Northern Infrastructure Pty Ltd; and
• Daintree Bio Enterprises Pty Ltd.
The full media statement from Worrells can be read here: https://worrells.net.au/resources/press-releases/daintree-bio-precinct-group-mossman-mill-enters-voluntary-administration
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