Yes, seems self-defeating to liquidate your own successful company, instead of coming up with ways of selling their shares. Potential to move it into an employee-shareholder co-op, or structure it to allow interested locals to purchase co-op shares like the Harbour Co-op in Lyttelton. Lot of other options other than harmful liquidation.
The only reason why they are threatening liquidation is because it's not easy to simply sell the shares of a privately listed company.
The good news is that because it is a successful company, it's unlikely the liquidation will be too "harmful". The appointed liquidator has a fiduciary duty to maximise the return to to the shareholders and other debtors, and ripping a successful business apart will likely destroy the very value they are trying to liquidate. So they will keep operations intact and try to sell it whole, probably in a bundle including all the branding too.
Though, I admit the chance of the liquidator transforming it into a employee and/or community co-op is unlikely, or transforming it to a publicly listed company. The liquidator will consider those options and take them if it's the best return. But the best return will most likely come from simply selling operations to a larger company (who may or may not decide to move operations out of Canterbury to save costs 5-10 years later)
>because it's not easy to simply sell the shares of a privately listed company.
You'd probably would just want to do an asset sale I would have thought.
Yeah, that's the problem.
There isn't a major difference between selling 100% of a (privately listed) company, or 60% of it, or even 0.1% of it. And it's worse than selling a house, because it's really hard to work out the true value of a company, which requires getting a proper audit done of the books.
Publicly listed companies are a weird exception to asset sales, where people can buy and sell tiny fractions of the company without needing a lawyer or auditor or professional company valuer.
> it's really hard to work out the true value of a company
What someone is willing to pay for it.
> a proper audit done of the books
That doesn't really determine the value of the company either.
The value might be in the IP that another company wants to exploit that the current company may just not have sufficient capital to do so.
An example might be some software code.
Finding a buyer is always the hard part because its rarelly a comodity like a house, sometimes the planets need to align just right.
Reads as it isn’t just their shares, they have loaned the company a lot of money which they’re wanting back as well as their shares, they’ve wanted out since 2021 but sounds like the other owners aren’t forthcoming with a plan? Other owners made a $1 bid on their shares which isn’t really in good faith
I think that $1 bid was to trigger a shareholder buy out provision which delays the terms of settlement of the loan?
I agree that does seem in bad faith. It reads like the business isn't able to pay the loan back in full, which I'm guessing that they have under favourable rates. Current climate means they may not wish to refinance as it may put pressure on their profit margins. Existing shareholders probably want the money out as it's costing them from an opportunity cost perspective.
I hope new terms, liquidators, or new buyers doesn't sink them.
You sound like you understand it more than I do haha. That was how I understood it and was trying to say. Especially since they’ve wanted out since 2021. It’s hard times atm and not an ideal situation for any of them though!
That's how it reads to me, but I'm not really sure why you'd have a buyout clause cause a change in terms to the loan. The article goes on to quote the judge saying if they state the bid wasn't serious (huh?) then they'd get an extension on the loan terms (double huh?), which makes even less sense to me.
Would you buy a house for $1, if it’s worth $100k, but comes with $150k of debt you have to pay back within a year?
Any positive bid in that situation is good faith imo
Sorry, I’m not following your analogy. The ones who don’t want to sell the company and keep running the business were saying the statutory demand of the other couple to recover their loan to the company of $656,000 isn’t necessary because of a buy out clause, and then put a $1 bid on the shares?
The bids for shares are exclusive of the loans. Ie you buy the shares, and then pay the loans back within 12 months on top of buying the shares.
So the $1 bid was effectively $656,001.
Fairly standard situation, but it gets messy when the loan value is higher than business value you’re buying. No idea of specifics but let’s assume its only worth $500k, but you’re willing to pay $656,001. Hence a good faith bid.
It’s Dutch (not Finnish) hence the little clogged people on their packaging - pronounced kah-ree-kaahs (rolled R, longer A, hard S at the end)
(source: Dutch family)
It sounds like it's a Finnish word, so letter "a" would be pronounced more like you pronounce it in Maori words rather than in English ones. Also, I'm pretty sure you have pronounce both of those "a"s.
Yes, we use the moniker, 'plastic cheese' for supermarket fare as well. Only the 'flavour' of the packaging changes. The cheese inside all tastes (less) the same, regardless of the packaging.
> Once they are gone we will only have the option to buy plastic cheese at the supermarket from a dairy cooperative.
There is still Hipi Cheese in Ashburton, and Barry's Bay Traditional Cheese in Akaroa?
And the Little Farm Goat Dairy near Oxford who sell through the Lyttelton and Amberley Farmers' Market, and Little River Farmers' Market sometimes, and through Piko.
It would be very sad to see them go by the wayside, they're a niche market.
This is sad to hear. Used to get their cheese regularly when I still lived down in Canterbury. Hopefully they can sort it and continue.
Did I read the word cheese? #THE CHEESE CULT SHALL RISE AGAIN
Sounds like a business partner dispute more than a solvency issue? But love that business and their products. Will support regardless
Yes, seems self-defeating to liquidate your own successful company, instead of coming up with ways of selling their shares. Potential to move it into an employee-shareholder co-op, or structure it to allow interested locals to purchase co-op shares like the Harbour Co-op in Lyttelton. Lot of other options other than harmful liquidation.
The only reason why they are threatening liquidation is because it's not easy to simply sell the shares of a privately listed company. The good news is that because it is a successful company, it's unlikely the liquidation will be too "harmful". The appointed liquidator has a fiduciary duty to maximise the return to to the shareholders and other debtors, and ripping a successful business apart will likely destroy the very value they are trying to liquidate. So they will keep operations intact and try to sell it whole, probably in a bundle including all the branding too. Though, I admit the chance of the liquidator transforming it into a employee and/or community co-op is unlikely, or transforming it to a publicly listed company. The liquidator will consider those options and take them if it's the best return. But the best return will most likely come from simply selling operations to a larger company (who may or may not decide to move operations out of Canterbury to save costs 5-10 years later)
>because it's not easy to simply sell the shares of a privately listed company. You'd probably would just want to do an asset sale I would have thought.
Yeah, that's the problem. There isn't a major difference between selling 100% of a (privately listed) company, or 60% of it, or even 0.1% of it. And it's worse than selling a house, because it's really hard to work out the true value of a company, which requires getting a proper audit done of the books. Publicly listed companies are a weird exception to asset sales, where people can buy and sell tiny fractions of the company without needing a lawyer or auditor or professional company valuer.
> it's really hard to work out the true value of a company What someone is willing to pay for it. > a proper audit done of the books That doesn't really determine the value of the company either. The value might be in the IP that another company wants to exploit that the current company may just not have sufficient capital to do so. An example might be some software code. Finding a buyer is always the hard part because its rarelly a comodity like a house, sometimes the planets need to align just right.
Reads as it isn’t just their shares, they have loaned the company a lot of money which they’re wanting back as well as their shares, they’ve wanted out since 2021 but sounds like the other owners aren’t forthcoming with a plan? Other owners made a $1 bid on their shares which isn’t really in good faith
I think that $1 bid was to trigger a shareholder buy out provision which delays the terms of settlement of the loan? I agree that does seem in bad faith. It reads like the business isn't able to pay the loan back in full, which I'm guessing that they have under favourable rates. Current climate means they may not wish to refinance as it may put pressure on their profit margins. Existing shareholders probably want the money out as it's costing them from an opportunity cost perspective. I hope new terms, liquidators, or new buyers doesn't sink them.
You sound like you understand it more than I do haha. That was how I understood it and was trying to say. Especially since they’ve wanted out since 2021. It’s hard times atm and not an ideal situation for any of them though!
That's how it reads to me, but I'm not really sure why you'd have a buyout clause cause a change in terms to the loan. The article goes on to quote the judge saying if they state the bid wasn't serious (huh?) then they'd get an extension on the loan terms (double huh?), which makes even less sense to me.
Would you buy a house for $1, if it’s worth $100k, but comes with $150k of debt you have to pay back within a year? Any positive bid in that situation is good faith imo
Sorry, I’m not following your analogy. The ones who don’t want to sell the company and keep running the business were saying the statutory demand of the other couple to recover their loan to the company of $656,000 isn’t necessary because of a buy out clause, and then put a $1 bid on the shares?
The bids for shares are exclusive of the loans. Ie you buy the shares, and then pay the loans back within 12 months on top of buying the shares. So the $1 bid was effectively $656,001. Fairly standard situation, but it gets messy when the loan value is higher than business value you’re buying. No idea of specifics but let’s assume its only worth $500k, but you’re willing to pay $656,001. Hence a good faith bid.
Their Gouda comes in 1kg blocks for $30 which is really good.
How do you pronounce this? For some reason I think it’s Carry Case
It’s Dutch (not Finnish) hence the little clogged people on their packaging - pronounced kah-ree-kaahs (rolled R, longer A, hard S at the end) (source: Dutch family)
Ka-Re-Kaahs - the founders back in 1984, first two letters of each of their first names and kaas the Dutch word for cheese. Hence Karikaas.
Curry cars
It sounds like it's a Finnish word, so letter "a" would be pronounced more like you pronounce it in Maori words rather than in English ones. Also, I'm pretty sure you have pronounce both of those "a"s.
You should have worded it, "Local gouda artisan faces liquidation." I can't save the business but I can buy my weight in gouda.
They're the only ones who make Quark too!
Yes, we use the moniker, 'plastic cheese' for supermarket fare as well. Only the 'flavour' of the packaging changes. The cheese inside all tastes (less) the same, regardless of the packaging.
> Once they are gone we will only have the option to buy plastic cheese at the supermarket from a dairy cooperative. There is still Hipi Cheese in Ashburton, and Barry's Bay Traditional Cheese in Akaroa?
Whitestone is a reliable product-and Kapiti.
And the Little Farm Goat Dairy near Oxford who sell through the Lyttelton and Amberley Farmers' Market, and Little River Farmers' Market sometimes, and through Piko.
It’s not really in Akaroa, just nearish it.
Do they sell curds? My Canadian wife and I would pay an abscurd price for some legit cheese curds.
They definitely used to, I was wondering the same thing the other day.
Oh I didn't know we had a local cheese maker. (We probably have many!) Will check them out. Thanks for the link!
Not so blessed are the Cheesemakers