In debt to the tune of A$25m, the Queensland-based South Johnstone sugar mill has been placed into receivership this month.
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Many problems have confronted the entire sugar industry over recent years. The impact of several wet seasons has hit hard and global prices for the commodity has plummeted. Many growers have questioned why the industry-wide problems should have such a dramatic effect on South Johnstone, but the ill-equipped management has also been blamed for the receivership order.
An offer of A$14.2m has been received from Bundaberg Sugar for the mill and its assets, ironic given that only six years ago a A$54m takeover bid offer by Bundaberg was rejected.
