An engineering company in Auckland has obtained court orders to liquidate a baby formula company and take over its factory.
Damon Engineering says Nutricia, which makes Karicare baby formula, has not paid it for more than $400,000 of work completed on a factory in Mt Wellington earlier this year.
Damon owner Chris Barrett said Auckland District Court last week ordered Nutricia to pay the money it owes his company.
Mr Barrett said the court also made an order giving Damon the right to sell Nutricia's factory to recover the debt.
A spokesperson for Nutricia, which is owned by Danone, a multinational corporation, said the company is seeking legal advice and hopes the issue can be resolved.