Frequently asked questions

Q. What has happened?
A. On 3 June 2009 Receiver & Managers were appointed to Dairy Farmers.  A Receiver & Manager is someone who takes control of a company's affairs when it is in financial difficulty and tries to find a longer-term solution to those difficulties.

Q. Why have Receiver & Managers been appointed?
A. Following the loss of a material contract with a key supermarket customer. The directors pursued a number of options in order to plug the gap this contract had caused however those efforts have been unsuccessful. Around 50% of members have given notice of resignation.

Q. Will I get paid for milk I have already provided?
A. Any milk supplied pre appointment represents an unsecured claim against the Company.

Q. What is the likely return to unsecured creditors?
A. It is highly unlikely there will be a dividend available to unsecured creditors.

Q. I have milk that has been collected for which I have not been paid. I am coming to take it away as I retain title to all milk provided until I am paid.
A. Milk supplied is likely to have been mixed with other milk. As such any retention of title claim will fail and you are therefore not able to collect any unpaid milk.

Q. Should I continue providing milk and how do I know I will be paid?
A. Dairy Farmers will continue to trade and therefore it is likely that the milk you provide will be required. The Receiver & Managers intend that milk provided to the business after 3pm 3 June 2009 will be paid for by the Company. For a two week period from the date of appointment, any milk supplied will be managed on a strict margin basis. After two weeks, we will move to a four week rolling arrangements, with an agreed base price.

Q. Will the Receiver & Manager provide me with a guarantee?
A. No, it is not the policy of the Receivers & Managers to provide any form of guarantee.

Q. Can I see a list of creditors?
A. The list of creditors is not available. The Receivers & Managers intend to call a meeting of the company's creditors on or around 7 September 2009 and you will receive further details in due course.

Q. Where should I file my claim?
A. Suppliers should send a statement of any amounts owed to them to The Joint Receivers & Managers, Dairy Farmers of Britain, Alpha Building, London Road, Nantwich, Cheshire, CW5 7JW.

Q. Why should I submit my claim?
A. Suppliers should send a statement of amounts owed to them as this will assist the directors in preparing a statement of affairs. In the (unlikely) event of realising sufficient assets to make a return to unsecured creditors, the statement of affairs will assist in calculating the return to unsecured creditors.

Q. I have not yet presented my loan stock interest cheque, will it be honoured?
A. No, any unpresented cheques represent an unsecured claim against the Company.

Q. I have a loan due back to me under my Members Financial Agreement - will I be repaid my money?
A. No, any loans due to Members or former members will rank as unsecured claims and it is very unlikely there will be any funds available for unsecured creditors

Q. I have a Bond due for repayment in 2012 / 2013 [etc] - will this still be repaid?
A. No, any Bonds in place for Members or former members will rank as unsecured claims and it is very unlikely there will be any funds available for unsecured creditors

Q. I have not been paid the interest due on my Bond / will I be paid interest on my Bond going forward?
A. Interest on Bonds for Members or former members will rank as unsecured claims and it is very unlikely there will be any funds available for unsecured creditors

If you have any further queries please email: dfobfarmers@uk.pwc.com