Dairy Farmers of Britain (Receivers and Managers Appointed) – Information Page

On Wednesday 3 June 2009, Stephen Oldfield, Ian Green and David Kelly, from PricewaterhouseCoopers, were appointed joint receivers and managers of Dairy Farmers of Britain Limited.

Tax guidance for farmers on monies lost as result of DFB’s receivership

*Final milk payment announcement*

Updates

• HMRC Tax decision
• Latest update - 18/12/09
• Receivers end of July 2009 update
• PwC webcast
• 14 day update
  

Read the full transcript of the webcast

For more information on the following and the relevant email contacts at both PwC and Dairy Farmers of Britain Limited, please click the links:

• Asset sale
• Press Releases
• Overview  
• Media
• Contacts
• Video announcements

Members helpline number - 0113 289 4000

Asset sale

King Sturge was engaged as agents to sell the plant & equipment of the Group which included selling the three dairies (Blaydon, Bridgend and Lincoln) for continuity of production in situ. However, despite national and international advertisement, it was not possible to find a buyer for these sites as operational dairies. Consequently our agents were instructed to:

• Decommission the dairy plant facilities and arrange the equipment for auction
• Advertise for sale the freehold properties.

The sales of the three dairies were concluded as follows:

• The Lincoln auction concluded on 30 September 2009
• The Bridgend auction concluded on 28 October 2009
• The sale of the plant & equipment and freehold and long leasehold property at the Blaydon Dairy completed on 14 January 2010.

All parties interested in residual property assets should contact King Sturge directly by sending an email to:
patrick.carter@kingsturge.com  marking the subject line 'Dairy Farmers'.

Overview

Stephen Oldfield, David Kelly and Ian Green were appointed receivers and managers of Dairy Farmers of Britain Limited (DFOB), the agricultural milk co-operative on Wednesday 3 June 2009. This followed an invitation by its Directors to its Bank, HSBC for the appointment.

Receivers and Managers were appointed on DFOB following significant losses in its liquids division compounded by the recent loss of its contract with the Co-operative Supermarket. Whilst losses in its liquid division were partially mitigated by the Group’s closure of two dairies earlier this year in Southern England, the extent of the loss over 2008/9 meant it was unable to pay its farmer members what was considered to be an economical milk price leaving it towards the bottom of the UK milk price league. This inability to pay what the farmers considered a competitive milk price, led to 50% of its farmer members tendering their resignation in the period November 2008 until now.

The farmer member council were requested to consider new methods of raising equity in March 2009, but were unable to sanction these pending the sale of the liquids business, which had been put up for sale along with other parts of the DFOB Group.

Since March the Group has successfully sold its Nene business to Meadow Foods and has interested parties in both its hard cheese business in Llandyrnog and its liquids business. None of these sales could be completed prior to the appointment of the receivers, but concerted efforts will be taken with a view to seeking a sale of these businesses as soon as possible out of receivership.

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Media

For all media enquiries please call Stephanie Howel on 020 7213 1768.

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Contacts

Members - 0113 289 4000
dfobfarmers@uk.pwc.com                         

Employees                       
dfobemployees@uk.pwc.com                   

Suppliers/creditors           
dfobsuppliers@uk.pwc.com  

Customers
dfobcustomers@uk.pwc.com

Ian Green, David Kelly and Stephen Oldfield are all licensed to act as insolvency practitioners by the Institute of Chartered Accountants in England and Wales and were appointed as Receivers and Managers and in their capacity as agents of Dairy Farmers of Britain Limited on 3 June 2009. Neither they nor their partners, firm, employees or agents shall incur any personal liability howsoever arising from their actions or under or in connection with any deed or other document or agreement entered into on behalf of Dairy Farmers of Britain Limited pursuant to or in connection with their appointment or the performance of their duties as receivers and managers. In particular (but without prejudice to the generality of the foregoing) no such personal liability shall arise by virtue of either Sections 37(1)(a) or 44(1)(b) Insolvency Act 1986 or otherwise.

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