The Bachelor Art Green's Riot Foods owes $6 million as administrators look for buyer

Auckland snack foods company Riot Foods owes creditors $1 million while shareholders who invested $5m await the outcome of a sale process.

The company, founded and formerly run by reality TV star Art Green and Ryan Kamins, was put into voluntary administration earlier this month after damage to its factory left it desperate for cash.

Forensic accountants Iain McLennan and Peri Finnigan of McDonald Vague were appointed administrators on February 4 and are currently trading the business. Production is continuing at its East Tamaki and Mangere factories.

McLennan told the Herald Riot Foods owed a combined $6m to shareholders and creditors, with "just under" $1m owed to creditors.

He said the administrators were looking to sell the business as a going concern, and had received several expressions of interest.

"We've received a significant amount of interest and we're dealing with that interest," McLennan said.

He said he was not prepared to put a number on how many people had come forward expressing interest.

It was too soon to say how much the business was worth, he said.

Former company chief executive Ryan Kamins, who in November resigned citing severe alcohol addiction, sent a letter to shareholders two weeks ago after the first meeting with McDonald Vague.

Kamins said there had been 15 "parties" which had expressed an interest in purchasing the business and/or the assets.

He also said that the administrators had applied to the High Court for an extension to move the watershed meeting to April 12.

It is understood a sale offer or decision for another outcome will be made at that watershed meeting.

Kamins is not in favour of liquidating the business, according to the letter. He noted that he had still been in contact with crowdfunding company PledgeMe and it may be able to help execute his proposals for the future of the business.

He proposed to sale shares of the business to a large domestic or international food business in exchange for capital, to use PledgeMe to raise funds under the existing business model or through a conditional arrangement with another shareholder to purchase 51 per cent of the total shares in Riot Foods under a charity of his choice.

"Although the interest in purchasing Riot by other parties is very positive, I think it would be prudent to at least have a backup plan," Kamins said in the letter.

Kamins and his father Trevor Kamins, a director, did not respond to the Herald's request for comment.

When quizzed about Kamin's position within the company, McLennan said he had none but said he was able to put forward a proposal as were others.

Kamins holds a 13.4 per cent stake in Riot Foods. Art Green holds a 3 per cent stake.

Kamins' parents own a 55 per cent majority stake in Riot Foods.

"The administration process is that we gave up all of the various offers and interest and it's for us to make a recommendation. It's ultimately for the creditors and affected shareholders to make their decision."

No decision about what to do with the business had been made by shareholders yet and timeframes for completion were subject to High Court approval, he said.

The administrators were working with Riot Foods directors Trevor Kamins and Art Green on trading and realising its assets, McLennan said.

"It is too early to predict the outcome of a realisation process."