THE anger conveyed to this newspaper by past and current members of First Milk over the summary decision to convert capital contributions into a, hitherto unexplained, form of equity is as severe as we have ever witnessed.
There is now almost a 100% belief among members and former members, of the troubled co-op that the monies owed to them – in many cases six-figure sums – will simply have to be written off.
The fact that the surprise announcement was not accompanied by any indication as to the value of shares and the company’s capitalisation has only lent credence to those who firmly believe that nearly all is lost.
It is little wonder, then, that it is not just The SF’s phones that have been ringing red hot, but also those of farming lawyers throughout the land this past week.
Even if the move is found to be legally competent, it is, at the very least, morally questionable. But then again, maybe the ailing company had no other financial option!
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