Spring Gully Foods out of debt
Austin Taylor from Meertens Charted Accountants and Kevin Webbs from Spring Gully Foods
South Australian pickled food producer Spring Gully Foods has cleared the debts that almost forced the company to close four and a half years ago.
Final payments under the company’s Deed of Company Arrangement (DOCA) have been dispatched to creditors with Spring Gully saying it has now repaid debtors 102 cents in the dollar.
The family-owned company entered into Voluntary Administration on 12 April 2013 with debts of more than AUD $4.9 million, attributed a sudden downturn in sales.
After news of the company’s troubles went public, consumers began purchasing the company’s products to show support and Coles supermarket speed up a private label contract negotiations , all helping the struggling business.
Spring Gully’s Managing Director, Kevin Webb, said it was a great relief to be through “the most traumatic period of the company’s history.”
“It means Spring Gully can look to the future with confidence,” Webb said.
“Our key aims throughout the DOCA was to make sure our creditors, who have been incredibly supportive of us, were paid in full.
“The extra two cents in the dollar was partially to thank them for their support and also for agreeing to changes to the original repayment schedule.”
Now ready for new business development
Mr Webb said now that the debts have been repaid, Spring Gully will have funds to invest in business development.
“We are already looking at new products and have long-term plans to further modernise and expand our factory,” Webb said.
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