- North Australian Cattle Company (NAAC) has come out of voluntary administration with new owner.
- The managing director of NAAC, Ashley James has taken over the NACC.
- The company went into administration due to disagreement amongst the company’s shareholders.
North Australian Cattle Company (NAAC) was in voluntary administration with debts of $3.6 million and this week, it has arisen from voluntary administration.
NAAC was run by Elders for three decades and in 2017 it was sold to a Chinese-Australian buyer and afterwards fell into administration.
The Company marked its return after the business was overtaken by an export industry veteran – Ashley James. As stated by James, NACC has been purchased along with other investors on 14 October 2021.
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James showed the hope of running the live export company for another 50 years. He added that, if things go as per the plan of the investor, then the first cattle shipment will be done in November.
James was a managing director at NACC when it got into administration and expressed the feeling of the staff stating that, “Obviously there's a bit going on with the administrators still; unfortunately, all of the previous staff of NACC, including myself, were left high and dry.”
Why NACC went into administration?
Ashley James explained that there was disagreement amongst the shareholders regarding how business should be managed. Two shareholders in China and one in Australia did not reach an agreement resulting in voluntary administration. In addition to this, cash flow was another issue as cash was not coming in from the shareholders.
What’s the plan of James to run NAAC?
Mr James explained that it is not the right time to take over the live export business but the company will start with small and after getting through the wet season, the long-term plan will be taken into consideration.
The live export business is facing a slowdown because of high cattle prices in Australia along with disruptions in the market of South-Est Asia.
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James gave a glimpse of his plan, “I think the key from here will be having good customers, good relationships and really concentrating on our key markets of Indonesia and Vietnam.” "But as a new company, we need to look at any markets that are available, and I think we'll look at air freight as well."
With the new owner – Ashley James, North Australian Cattle Company has been able to come out of the voluntary administration that it went into due to conflicts between the shareholders and lack of cash flow. James highlighted few issues that the company will be facing in short term but expressed the confidence that the company will be running for another 50 years. The performance and strategy of the company will be on watch out.