A milk transport company has gone into liquidation, leaving roughly 27 South African dairy farmers with a slim chance of reclaiming any of the R90 million they are owed. (Xurxo Lobato/Getty Images)
A milk transport company that short-changed over 25 dairy farmers a collective R90 million has been moved out of business rescue and into liquidation, leaving farmers and other creditors with little hope of reclaiming their debts.
This is according to Fanie Ferreira, CEO of the Milk Producers Organisation (MPO), who said that Desmanda Milk’s overwhelming debt burden meant business rescue practitioners had no real chance of turning the company around.
Ferreira said that the MPO has an independent lawyer and liquidator advising them and the message is clear: “It looks like they [farmers] will not get anything out of it,” he said.
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