Crafar coy on whether he can pay debts

Allan Crafar. Photo / Christine Cornege

Allan Crafar is being uncharacteristically coy about whether he's been able to come up with money needed to settle his debts, despite earlier assurances that he would.

The embattled head of the Crafar dairy empire was this afternoon refusing to be drawn on whether or not he had been able to come up with more than $200 million needed to repay PGG Wrightson and the banks by the close of tenders for the properties at 4pm.

Instead he offered this response: "I've always got money, it's just sometimes it's Monopoly money."

Asked whether it was Monopoly money he was offering the receivers, Crafar said it was the "real stuff".

When pushed further, Crafar, who is understood to be attending a wedding in the South Island, said he had "talked to them (the receivers) about what we want to do" but that he "really didn't want to comment right now".

"I can't comment. We'll just see what happens."

Crafar earlier refused to name the backer who would provide him with the money he needs to clear his debts with receivers KordaMentha but said: "I've done it before and I'll do it again."

He added: "I have a deal for the receiver and it will be a very attractive one but they [the backers] want it to stay confidential."

Plateau Farms Limited went into receivership last October.

Chinese-backed company UBNZ is rumoured to have offered about $230 million for the farms, while state-owned Landcorp has also thrown its hat in the ring, but denied it was a Government-directed move to derail UBNZ's bid for the properties.

UBNZ Funds Management has signed a conditional sale agreement with receivers KordaMentha to buy the farms, subject to Overseas Investment Office approval and the absence of a better offer.

Landcorp says it's offer was at market value, but that it was a clean deal, which may find favour with the receivers because it was not subject to OIO approval.

The receivers for the Crafar empire said earlier today they were expecting further tenders would be lodged before this afternoon's deadline.

Michael Stiassny and Brendon Gibson from KordaMentha said there had been significant interest in the 16 Crafar farms and expectations were that a number of further tenders would be placed before tenders close at 4pm.

Gibson said assessing the offers would take some time. The receivers said they had no further comment to make until such time as they had made the decision.