Mondello Farms entered administration and receivership on 19 March. The firm is a large-scale wholesaler of processed potatoes and had about 140 staff in its South Australian and Victorian operations when it collapsed.

According to a report by receivers McGrath Nicol, secured creditors are owed $20 million, employees are owed $830,000 and unsecured creditors are owed $17.4 million.

The list of unsecured creditors shows debts of $182,000 to Wing Flexible Packaging, $116,000 to Associated Packaging, $78,000 to Produce Carton Supplies, $62,000 to Amcor Flexibles NZ, $54,000 to Visy Board and $30,000 to Pope Packaging.

A McGrath Nicol spokesperson told ProPrint that it was too soon to determine what sort of return creditors may receive.

The spokesperson added that there had been "considerable interest" from parties looking to buy Mondello Farms ahead of a 4 June deadline. No further update has been provided about the sales process.

Receiver Sam Davies said in a statement: "It is too early to fully determine all the reasons for Mondello Farms' failure, but it is noted that the company was under-capitalised and had incurred significant operating losses from which it was not able to recover when industry prices for potatoes fell in 2011-2012."

[LinkedIn: Should the industry stop operating on credit?]

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