2 Sep 2010

Crafars say Rabobank won't accept their money

6:31 am on 2 September 2010

The Crafar family says it has the money to take its farming business out of receivership but the bank won't accept it.

The family's 16 North Island farms were put into receivership last year, with debts totalling more than $200 million.

The family spokesperson, Allan Crafar, says that he tried to deposit a certificate that promised more than $400 million with Rabobank a fortnight ago but that the bank wouldn't accept it.

Mr Crafar is refusing to name the financial backers, but says they're offended Rabobank has rejected their money, and are working on re-issuing a money certificate.

The receivers, KordaMentha, say that any offer of money should have come to them but that they have no knowledge of any certificate being presented to the bank.

The receivers have a conditional agreement with a Hong-Kong-based company to buy the farms, which is dependent on Overseas Investment Office approval.