45 DAYS OR BUST: Mill given extension
UNKNOWN FUTURE
The Queensland government will probably be asked to bail out the troubled Mossman sugar mill before a decision on its future is made in February.
This follows a 45-day extension to the voluntary administration status which the Mill was granted after applying for it in late December.
A recommendation from the administrator would likely be made around mid-February about whether or not the Mill and its operating companies be placed into liquidation.
This would depend mainly on if a buyer is found and/or if bailout money is secured from the state and possibly also the federal government.
Newsport understands that the state government is not only the Mill’s major creditor, but is also likely to be asked to fork out several more millions of dollars to guarantee its operation, possibly under a new company, for at least 12 months.
We also have been told that during the recent flooding, the Mill suffered up to $1-million damage, but was not insured because insurances were cancelled in 2023 to save costs.
After Newsport reported that a Brisbane-based bio-energy company – Helmont Energy – had shown informal interest in the possible purchase of the Mill and its associated businesses, we received a statement from the spokesperson of LMS Energy, the parent company of Helmont:
“At no time has Helmont Energy or LMS Energy shown any interest – informal or otherwise – in the purchase of Mossman Mill.”
However, we have since been told that Helmont has maintained an informal interest but that any possible takeover would be dependant on state government guarantees.
We also understand a meeting or meetings are being sought in coming weeks between the administrators, Mill and associated company executives, the Department of Agriculture and Fisheries, state MP Cynthia Lui and the region’s Chamber of Commerce about the future of the Mill.
Support local journalism
If you’d like to support our journalists and independent journalism in the Douglas Shire please support Newsport by hitting the Support Us button on the top of the page.
Thank you!
Newsport thanks its advertising partners for their support in the delivery of daily community news to the Douglas Shire. Public interest journalism is a fundamental part of every community.
Got a news tip? Let us know! Send your news tips or submit a letter to the editor here.
* Comments are the opinions of readers and do not represent the views of Newsport, its staff or affiliates. Reader comments on Newsport are moderated before publication to promote valuable, civil, and healthy community debate. Visit our comment guidelines if your comment has not been approved for publication.