By Hugh Stringleman
Monday 16th September 2002 |
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With more than $50 million of borrowed funds spent in the five-year battle for control over Richmond, and perhaps half as much again committed, PPCS has been found in breach of disclosure regulations almost right back to the start of its northern foray.
Justice Young found that HKM Associates, formed by a trio of Maori businessmen, was an undisclosed nominee company for PPCS when it bought a 34% stake of Richmond shares from the Meat Board in 1997-98, in contravention of an interim injunction imposed by Justice Gendall.
Justice Young must now determine whether that flaw in the foundation has weakened the entire subsequent hold on Richmond by PPCS.
He has been asked to consider ordering forfeiture of all 51% which PPCS has, or will shortly have, in Richmond.
Even without such an order, PPCS has irreparably damaged its reputation in the minds of many farmer shareholders and suppliers of Richmond, the country's largest meat company.
What has been called the "Trojan moa" tactic is now fully uncovered, from the beginning of a five-year deception throughout several share dealings which led ultimately to PPCS control, and it will affect meat company supplier loyalties and north-south farmer relations for years to come.
PPCS chief executive and Richmond board member Stewart Barnett is in an invidious position when he ventures north of Cook Strait, perhaps for the Richmond agm on December 20.
He may also face a backlash from PPCS directors and shareholders, when all the disclosures in the High Court are digested.
HKM principal Alan Haronga, once hailed as a Richmond ally, was found to be scheming with Mr Barnett from the beginning.
Also chairman of Mangatu Incorporation, one of the largest Maori farming trusts on the East Coast, Mr Haronga was welcomed as purchaser of the Meat Board shares because it opened up a new spirit of co-operation between Maori farming interests and Richmond as regional processor and exporter.
That relationship will need to be rebuilt.
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