Mossman Mill enters liquidation after investor pulls out

The mill's parent company, the Daintree Bio Precinct Group, had been facing liquidation since going into voluntary administration last November, 2023.

The company received a lifeline on February 29, 2024, when creditors supported a proposal put forward by an unnamed investor who stepped in at the last minute with plans to save the mill.

Creditors resolved to accept a proposal from Clever Power Pty Ltd for a Deed of Company Arrangement (DOCA) to re-structure and recapitalise the group.

However, on Friday, the community was told that those plans had fallen through, with investor Clever Power Pty Ltd backing out of the deal just before the end of a 15-business day statutory deadline.

John Goggin of Worrells, Cairns was appointed administrator of the following companies that comprise the Daintree Bio Precinct Group.

Mr Goggin said on March 21, the proponents of the DOCA advised they were unable to secure the required investment to proceed with their proposal and as a result, the Daintree Bio Precinct Group entered liquidation on March 22.

"Throughout the extended administration I have been conscious of the impact this appointment and uncertain future for the companies has had on everyone involved and the wider Mossman community," Mr Googin said.

"I have had many meetings and extensive communications with key and community stakeholders - including staff, growers, state and federal governments, local government, suppliers and other representatives - over the past four months in relation to the future prospects for the Mill and associated projects of the companies.

"As Administrator, I have overseen the trading the mill and preserving and protecting the assets, including notably the completion of the 2023 cane crush season and post crush maintenance, dealing with the impacts of Cyclone Jasper and subsequent flooding, investigations into the affairs of the companies, and engagement with interested parties in an effort to formulate a restructure of the group.

"I liaised with numerous interested parties regarding their interest in the group and the mill operations, however only one party submitted a viable expression of interest.

"This was advanced to a proposal for a DOCA on the eve of the adjourned second meeting of creditors.

"The proposal had a number of requirements to address prior to signing the DOCA, but unfortunately the proponents have not been able to address those requirements and secure the necessary investment to proceed."

Mr Googin said he'll now be working towards an orderly winding down of the mill operations and securing the associated assets for sale.

"I will be working with the staff, governments, growers, and other affected stakeholders over the coming weeks and months in this regard," he said.

Canegrowers Mossman chairman Matt Watson described the news as "heartbreaking" for the region.

"It's heartbreaking, not just for growers and the local sugar industry, but for the whole Mossman community," Mr Watson said.

"Local growers have been backing this business for years through investment in our crops and in the mill itself, and we had high hopes when this investor approached the company administrator with a plan to save the mill.

"They laid out their plans for bringing the mill back to profitability over the next four years, before transitioning into a green energy hub.

"To have those hopes crushed at the last minute and for the investor to simply walk away from the community is just devastating."

Canegrowers CEO Dan Galligan said the industry body was now calling on the state Government to honour its commitment to provide $12.1 million in funding to support workers and farmers.

"Growers have already invested more than $14 million into this year's crop and the harvest is rapidly approaching," Mr Galligan said.

"We need the government to come through on its funding commitment so that growers can recoup as much of that money as possible, otherwise a lot of families and businesses in the town will go to the wall."

On February 28, Queensland premier Steven Miles announced the funding at a Community Cabinet meeting in Cairns, saying the government understood that Mossman Mill played "a pivotal role in shaping the town, livelihoods and culture of the communities around it."

"Of course, we would like to see the mill continue operations but our government is committed to ensuring our workers, farmers and wider community are supported, whatever the outcome," Mr Miles said at the time.

Mr Galligan is now calling on the Premier and state Agriculture Minister Mark Furner to back up their words with actions and provide the funding necessary to help get the 2024 crop harvested.

"This is not just about growers getting paid, it's also about mill workers, suppliers, tradies, businesses of all shapes and sizes, right across the region," he said.

"Growers have put millions into this crop, but if they can't get it harvested, more than $40 million will be lost to the community.

"Now is the time for government to step up and support the entire community by ensuring we can get this crop off."