- Wattle Health Australia (WHA) has issued a default notice to its joint venture entity, Corio Bay Dairy Group, under its secured loan agreements
- The company is the only secured creditor of Corio Bay Dairy and is working with the administrator to protect its $44 million investment
- Corio Bay Dairy is a joint venture between Organic Dairy Farmers of Australia (ODFA), Niche Dairy and Wattle Health
- A number of factors, including COVID-19 and ODFA being placed into administration in mid-June, contributed to Corio Bay Dairy’s struggles
- Shares in Wattle Health Australia (WHA) are currently suspended and last traded at 48.7 cents each
Wattle Health Australia (WHA) has issued a default notice to its joint venture entity, Corio Bay Dairy Group, under its secured loan agreements.
As Corio Bay Dairy’s only secured creditor, Wattle Health will work with the company’s administrator, David Mutton of RSM Australia, in an effort to salvage its $44 million investment in Corio Bay Dairy.
Corio Bay Dairy is a joint venture entity between Organic Dairy Farmers of Australia (ODFA), Niche Dairy and Wattle Health, and had previously been working on an organic spray dryer that would transform organic milk into a dry form to be used in a range of products.
A number of factors have contributed to Corio Bay Dairy’s struggles this year, beginning with the uncertain business environment brought on by COVID-19, particularly the ongoing situation in Victoria.
The impact of the pandemic was then compounded by ODFA being placed into voluntary administration on June 15 this year.
Tony McKenna, Managing Director and CEO of Wattle Health Australia, stressed that the company’s operations – including its Uganic and Little Innocents ranges – would not be impacted by that Corio Bay Dairy administration.
“The outcome of a successful administration process will likely strengthen our financial position during a time of market uncertainty and forge new strategic partnerships that will contribute to the growth of the company,” he said.
“Our current focus remains on building our sales platform and developing our capability to provide consumers with premium organic products from an Australian-based manufacturing supply chain,” he added
Shares in Wattle Health Australia (WHA) are currently suspended from trading and last traded at 48.7 cents each.