AAP Finance

Murray Goulburn still has $265m in equity

By AAP Newswire

The financial shell of fallen dairy co-op Murray Goulburn is sitting on $265 million in equity, but it is still unclear how much investors will see once the company is wound up.

The group, which exists to fulfil financial reporting obligations and manage retained litigation, reported a $24.4 million loss for the year to June 30, with operational income having completely dried up following Murray Goulburn's sale to Saputo last year.

The group said $6.92 million in interest income was more than offset by litigation costs tied to the $42 million Endeavour River class action settlement in June.

The Endeavour matter was launched on behalf of 1,300 investors who lost out when the former milk processor unexpectedly cut milk prices and downgraded profit guidance in 2016.

The group said the bulk of the settlement was covered by insurance, with the remaining $8.2 million to be recovered by a third party insurer.

The group now awaits the outcome of a second class action proceeding, known as the Webster Class Action, with a trial date set for February 2020 and an estimated trial time of four weeks.

Financial reports lodged with the ASX on Tuesday showed the group still had $264.5 million in total equity, down from $288.9 million a year ago.

The group said it will be wound up after the retained litigation is finalised, with the remaining funds - if any - to be distributed among shareholders and unitholders.

"The board is of the view that the group can and will be able to pay its debts as and when they fall due, however as the winding up of the group is intended to occur at an as yet undetermined point in the future, these financial statements are not prepared on a going concern basis," the co-op said in its report.