Crafar confident of paying debt

Allan Crafar. Photo / Herald on Sunday

Battling dairy farmer Allan Crafar is confident he can come up with the more than $200 million he needs to settle his debts by 4pm today.

Mr Crafar was yesterday refusing to name who would provide him with the money he needs to clear his debts with receivers Korda Mentha but said: "I've done it before and I'll do it again.

"I have a deal for the receiver and it will be a very attractive one but they [the backers] want to stay confidential. I have thousands of backers, mate, most of the country in their right mind would back us."

State-owned Landcorp has made a cash offer although it is understood to be lower than that of Chinese company Natural Dairy NZ, whose offer is believed to be around $230 million.

Landcorp is promising a quicker settlement by making it a conditionof purchase that three farmhousesat Reporoa occupied by Crafarfamily members were empty.

Natural Dairy has already signed a sale and purchase agreement but this is conditional on approval from the Overseas Investment Office, which could take a few months.

Mr Crafar said that while there were public concerns about foreign ownership, he believed Landcorp was no better as it would not be able to run his farms as successfully as he had.

"Landcorp won't get production like I could and they have wasted hundreds of thousands of dollars on due diligence," he said.

"If they ran their template over our farms the nation's income would drop ... corporates don't work efficiently in farming. You've got to have your skin in the game and your guts on the line."

He has not spoken to Natural Dairy representatives in months but seemed to favour their offer if his fails.

"Only one of them has ever said I wouldn't lose my house and that's the Chinese, so of course I don't want to lose my house. They've said it on public record several times so why would I want Landcorp to get it when they want to chuck me out ?"

Mr Crafar and his family have refused to leave the property. He said a court case where they would hear the receiver's eviction order would be held this month.

The 16 Crafar properties include 13 dairy farms and three drystock properties, with projected production for the 2010/11 season of 4.9 million kilograms of milksolids.

Receivers Michael Stiassny and Brendon Gibson said in May a sale and purchase agreement for the portfolio of farms had been signed with UBNZ Funds Management conditional on Overseas Investment Office consent and structured so the receivers could accept any better or more favourable offer.