The Country
  • The Country home
  • Latest news
  • Audio & podcasts
  • Opinion
  • Dairy farming
  • Sheep & beef farming
  • Rural business
  • Rural technology
  • Rural life
  • Listen on iHeart radio

Subscriptions

  • Herald Premium
  • Viva Premium
  • The Listener
  • BusinessDesk

Sections

  • Latest news
  • Coast & Country News
  • Opinion
  • Dairy farming
  • Sheep & beef farming
  • Horticulture
  • Animal health
  • Rural business
  • Rural technology
  • Rural life

Media

  • Podcasts
  • Video

Weather

  • Kaitaia
  • Whāngarei
  • Dargaville
  • Auckland
  • Thames
  • Tauranga
  • Hamilton
  • Whakatāne
  • Rotorua
  • Tokoroa
  • Te Kuiti
  • Taumurunui
  • Taupō
  • Gisborne
  • New Plymouth
  • Napier
  • Hastings
  • Dannevirke
  • Whanganui
  • Palmerston North
  • Levin
  • Paraparaumu
  • Masterton
  • Wellington
  • Motueka
  • Nelson
  • Blenheim
  • Westport
  • Reefton
  • Kaikōura
  • Greymouth
  • Hokitika
  • Christchurch
  • Ashburton
  • Timaru
  • Wānaka
  • Oamaru
  • Queenstown
  • Dunedin
  • Gore
  • Invercargill

NZME Network

  • Advertise with NZME
  • OneRoof
  • Driven Car Guide
  • BusinessDesk
  • Newstalk ZB
  • Sunlive
  • ZM
  • The Hits
  • Coast
  • Radio Hauraki
  • The Alternative Commentary Collective
  • Gold
  • Flava
  • iHeart Radio
  • Hokonui
  • Radio Wanaka
  • iHeartCountry New Zealand
  • Restaurant Hub
  • NZME Events

SubscribeSign In

Advertisement
Advertise with NZME.
Home / The Country

McVitty Properties liquidation winds up leaving BNZ with $2.6M shortfall

BusinessDesk
14 May, 2015 12:52 AM2 mins to read

Subscribe to listen

Access to Herald Premium articles require a Premium subscription. Subscribe now to listen.
Already a subscriber?  

Listening to articles is free for open-access content—explore other articles or learn more about text-to-speech.
‌
Save
    Share this article
The Reserve Bank said yesterday that 25pc of farmers are currently carrying debts above 65pc of the value of their assets and are under pressure in the face of weak dairy prices. Photo: Ross Setford.

The Reserve Bank said yesterday that 25pc of farmers are currently carrying debts above 65pc of the value of their assets and are under pressure in the face of weak dairy prices. Photo: Ross Setford.

McVitty Properties, one of two failed farm investment companies owned by Manawatu farmers Robert and Margaret McVitty, has completed its liquidation, leaving creditor Bank of New Zealand with a shortfall of about $2.6 million.

McVitty, which invested in dairy, dairy support, sheep and beef farms in the Manawatu and Hawkes Bay, was put into receivership in March 2010 when it was unable to make payments on debts including $43 million owed to BNZ.

Unsecured creditors are owed $151,780, according to the final liquidators' report from Richard Simpson and David Ruscoe of Grant Thornton.

Falling farm prices had further eroded the bank's security and McVitty was also guarantor for a number of related party debts including Patoka Dairies, which was put into receivership the same month, owing BNZ $40.2 million.

The McVittys held about 67 percent of Patoka, which owned six dairy or dairy support farms in Hawkes Bay and which is also in liquidation.

Advertisement
Advertise with NZME.
Advertisement
Advertise with NZME.

The receiverships came just months after the high-profile Crafar Farms were put into receivership in October 2009, owing Westpac Banking Corp, Rabobank and PGG Wrightson Finance some $200 million.

Like the Crafars, McVitty was controversial, being charged for obstructing an animal welfare officer in 2006 who was trying to prevent him shooting a cow.

However, the sale of McVitty and Patoka farms hasn't been controversial, and the selldown has allowed BNZ to recoup most of what it was owed.

Advertisement
Advertise with NZME.

The Reserve Bank said yesterday that 25 percent of farmers are currently carrying debts above 65 percent of the value of their assets and trading in negative equity, and they would be under pressure in the face of weak dairy prices.

"Another year of low prices, that would be a worry for the economy, no question, and also that would be a worry for farmers in terms of their debt capacity," governor Graeme Wheeler told a parliamentary hearing into the bank's six monthly financial stability report.

Discover more

Economy

<i>Bernard Hickey:</i> Should May Wang be allowed to buy NZ's dairy farms?

25 Mar 12:35 AM
Agribusiness

The $47 billion rural hangover

06 Feb 04:30 PM
Agribusiness

Kiwi exporters savour Indian deal's potential

29 Jun 05:30 PM
Save
    Share this article

Latest from The Country

OpinionGlenn Dwight

Meryl Sheep and Judy Drench: Does A Dog's Show need a movie?

The Country

Vege tips: Yacon adds a juicy twist to your garden and plate

The Country

Barbie Cassidy hopes for a new champion for her woollen dog beds


Sponsored

Revealed: The night driving ‘red flag’

Advertisement
Advertise with NZME.

Latest from The Country

Meryl Sheep and Judy Drench: Does A Dog's Show need a movie?
Glenn Dwight
OpinionGlenn Dwight

Meryl Sheep and Judy Drench: Does A Dog's Show need a movie?

OPINION: A Dog's Show was essential childhood viewing - second only to the Goodnight Kiwi.

09 Aug 05:01 PM
Vege tips: Yacon adds a juicy twist to your garden and plate
The Country

Vege tips: Yacon adds a juicy twist to your garden and plate

09 Aug 05:00 PM
Barbie Cassidy hopes for a new champion for her woollen dog beds
The Country

Barbie Cassidy hopes for a new champion for her woollen dog beds

09 Aug 05:00 PM


Revealed: The night driving ‘red flag’
Sponsored

Revealed: The night driving ‘red flag’

04 Aug 11:37 PM
NZ Herald
  • About NZ Herald
  • Meet the journalists
  • Newsletters
  • Classifieds
  • Help & support
  • Contact us
  • House rules
  • Privacy Policy
  • Terms of use
  • Competition terms & conditions
  • Our use of AI
Subscriber Services
  • NZ Herald e-editions
  • Daily puzzles & quizzes
  • Manage your digital subscription
  • Manage your print subscription
  • Subscribe to the NZ Herald newspaper
  • Subscribe to Herald Premium
  • Gift a subscription
  • Subscriber FAQs
  • Subscription terms & conditions
  • Promotions and subscriber benefits
NZME Network
  • The New Zealand Herald
  • The Northland Age
  • The Northern Advocate
  • Waikato Herald
  • Bay of Plenty Times
  • Rotorua Daily Post
  • Hawke's Bay Today
  • Whanganui Chronicle
  • Viva
  • NZ Listener
  • Newstalk ZB
  • BusinessDesk
  • OneRoof
  • Driven Car Guide
  • iHeart Radio
  • Restaurant Hub
NZME
  • About NZME
  • NZME careers
  • Advertise with NZME
  • Digital self-service advertising
  • Book your classified ad
  • Photo sales
  • NZME Events
  • © Copyright 2025 NZME Publishing Limited
TOP