Daily 499 - What really happened at S&W Seed Company

Farm Tender Daily - All the news for Monday, the 21st of October, 2024.

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By Dwain Duxson - An Ag Enthusiast

What really happened at S&W Seed Company - S&W Seed Company went broke, owing $10.5 million to Farmers and $39 million to the NAB. One Farmer who was on the Committee of Inspection in the administration process reached out to tell us what really happened. We will piece it out here.

The company was turning over around $50 million, and for some reason, they loaned the parent company in the US (S&W USA) $30 million, which was unsecured. The directors, who were all on $500k each, did a runner after things started looking a little shaky. They bolted (sacked/resigned), and the company went into administration.

Deloitte (the administrators) came along and ripped a further $2.5 million out of the coffers for 12 weeks of work. They then sold the company to Avior Capital for $11 million, which is owned by ex-Deloitte Partners. However, the day before the vote on what was to happen to the company, the committee (committee of inspection - The Farmer reps) got a phone call from a legitimate NZ Seed company asking why their offer wasn’t considered. When they pressed Deloitte on this, they claimed it wasn’t a good enough offer to present, but they argued that the deal wasn’t only about money. The committee thought that the business needed someone to partner with and rebuild a relationship with for the future, and an established Seed company fitted better with thier vision rather than a finance company (Avior) looking to flip the company.

The committee said, looking back, we, as Farmers and service providers, were railroaded and overruled by Deloitte/S&W to get what they needed out of this situation, and we are left to rebuild the industry and go again.

The biggest coincidence of all, a Sunflower Seed grower delivered $3 million worth of Seed to the Seed shed 2 days before they announced they were going into voluntary administration. That Seed is all now in the S&W inventory (stock) pool, which was picked up by Avior Capital for 15c/$. The directors, through this, have walked away scot-free.

Avior Capital got a cheap $50 million turnover company with $20 million worth of stock for $11 million and have left the Farmer $10.5 million out of pocket. This one smells big time. Reply to [email protected]

The Farmers Club headlines - Our 3 topics tomorrow are:
1) Remember SRS, it divided the Sheep industry. Other things that divide Farmers are…….
2) Corporate Farming models differ from Family Farming models, and so they should….
3) For 2 years now, I haven’t listed, heard or watched the ABC. Here’s why…..
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Today's Trends - Sales trends included Air Compressors, Millet Seed, Hay Rakes, Hay Caps, Mister, Headers, Slashers, Rye Grass Hay, Round Balers, Vetch Hay, Working Dogs, and Mower Conditioners.

End of message

Dwain Duxson
P - 0427 011 900
E - [email protected] 

What was listed today.

What was sold today.

Thanks for reading.