Director faces investigations following Mundella collapse

Dairy farmer Phil Hall expressed devastation as Mundella Foods, Margaret River Dairy Company, and The Cheeky Cow collapsed, leaving him and other suppliers owed hundreds of thousands of dollars. Hall, who is owed enough to buy a house, anticipates receiving nothing from the liquidation process. The unpaid debts contributed to his family's decision to sell their farms and exit the dairy industry after six generations.

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I don't know what happened to Mundella, but I know this year we basically never got paid.

Director Hayden Russell is under investigation by liquidators Mackay Goodwin. Preliminary findings suggest potential insolvent trading and numerous "unreasonable transactions." Mundella and its associated companies were placed into liquidation on August 6, following the termination of a Deed of Company Arrangement (DOCA) proposed by Russell last year.

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Myself and another dairy farmer, we both did the same thing, believing in this company. We wanted this to work because it was the only way forward for the future.

Under the DOCA, unsecured creditors were initially offered a potential return of 68 cents to the dollar through a real estate sale and lease-back arrangement. However, administrators terminated the deal due to Russell's non-compliance. Financial statements revealed that during the DOCA period, over $620,000 was spent on expenses, leaving just over $12,000 when the deed ended, with no significant distribution to creditors.

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I remember being three and running around this farm.

Despite the financial fallout, Hall holds no ill will towards Russell, acknowledging that Mundella initially paid dairy farmers a higher price for milk compared to other processors. He believed Russell was trying to support the dairy industry. The companies' properties and remaining assets have been transferred to the mortgagee, Bowral Capital Pty Ltd.

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I'm not angry with Hayden because he was trying to do the right thing for the dairy industry.