Hardliners fight on as Enza seeks settlement

Friday 17th August 2001

Apple exporter Enza hopes a $12 million payment to growers will put an end to a lengthy dispute over who pays the bill for foreign exchange losses.

Enza's corporate shareholders, Guinness Peat Group and investment bank FR Partners, have insisted pipfruit growers, not the company, must pay $51 million of forex losses racked up in previous years.

The payment, part of a deal hammered out between Enza and growers' organisation Pipfruit Growers New Zealand, will be made next week. It will take the form of a refund of payments already deducted by Enza from growers' share of apple and pear sales.

The payment will be withheld from one hardline growers' group which has refused to withdraw its opposition to an industry settlement, claiming Enza must foot the bill for all the forex losses.

The proposed settlement includes agreement by Enza to pay $30.3 million of losses already booked but not a further $21.1 million expected next year.

Enza will also pay a $4.2 million loss on the disastrous Omniport loading plant, which has been closed down.

There are a number of conditions including majority grower acceptance and bank finance for the $21.1 million loss.

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