Cedenco's US owners upset with ANZ

SK Foods International, the major shareholder of food processor Cedenco Foods, is seeking legal advice in response to the decision by ANZ National Bank to appoint a receiver to its operations.

The directors of SK Foods International argue the appointment of a receiver was "without justification" and that ANZ has breached the terms of an agreement it had with Cedenco.

They say SK Foods has invested heavily in New Zealand and employed many New Zealanders, and believe this kind of action serves only to discourage foreign investment in New Zealand.

SK Foods has reportedly appointed Auckland law firm Kensington Swan to act on their behalf.