On 20 November 2023, John Goggin of Worrells (Cairns office) 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.
Daintree Bio Precinct Ltd (DBP) is a cane grower owned company located in Mossman, Far North Queensland. DBP’s subsidiary - Far Northern Milling Pty Ltd - acquired the Mossman Mill from Mackay Sugar Limited in July 2019. DBP’s other subsidiaries own land adjacent Mossman Mill and operate environmentally sustainable bio-projects and products.
At the reconvened statutory second meeting of creditors on 29 February 2024 (adjourned from 22 December 2023), creditors resolved to accept a proposal from Clever Power Pty Ltd for a Deed of Company Arrangement (“DOCA”) to re-structure and recapitalise the group.
On 21 March 2024 the proponents of the DOCA advised they were unable to secure the required investment to proceed with their proposal. As a result, the proposed DOCA has not been executed within the statutory 15 business day timeframe, and accordingly the “Daintree Bio Precinct Group” of companies transitioned into liquidation on 22 March 2024 pursuant to section 446A of the Corporations Act.
Mr Goggin said, “Throughout the extended administration I have been conscious of the impact this appointment and uncertain future for the companies has had on everyone involved and the wider Mossman community.
I have had many meetings and extensive communications with key and community stakeholders - including staff, growers, state and federal governments, local government, suppliers and other representatives - over the past four months in relation to the future prospects for the Mill and associated projects of the companies.
As Administrator, I have overseen the trading the mill and preserving and protecting the assets, including notably the completion of the 2023 cane crush season and post crush maintenance, dealing with the impacts of Cyclone Jasper and subsequent flooding, investigations into the affairs of the companies, and engagement with interested parties in an effort to formulate a restructure of the group.
I liaised with numerous interested parties regarding their interest in the group and the mill operations, however only one party submitted a viable expression of interest. This was advanced to a proposal for a DOCA on the eve of the adjourned second meeting of creditors. The proposal had a number of requirements to address prior to signing the DOCA, but unfortunately the proponents have not been able to address those requirements and secure the necessary investment to proceed.
I will now be working towards an orderly winding down of the mill operations and securing the associated assets for sale. I will be working with the staff, governments, growers, and other affected stakeholders over the coming weeks and months in this regard”.
Worrells advises it will continue to provide updates as the matter progresses.
Affected creditors are requested to submit their claims via our file information portal at www.worrells.net.au and can direct all enquiries to cairns@worrells.net.au.
Worrells is the leading brand of insolvency and turnaround teams. With local teams in Qld, NSW/ACT, Vic, and WA, Worrells also has the support of a national brand. Its teams has helped people and business recover from difficult financial situations and assisted the creditors attached for over 50 years.
–ENDS–
John Goggin
Principal, Worrells Cairns
john.goggin@worrells.net.au