Cherri Global Liquidation Report Reveals Complex Debt Structure

Cherri Global, a major cherry grower in Hawke’s Bay, has entered liquidation with a staggering debt of nearly $43 million, according to the latest report by its liquidators. The collapse of the company, which occurred on March 8, 2025, has sent shockwaves through the local agricultural sector and raised questions about the sustainability of regional growth initiatives in New Zealand.

Debt Breakdown and Key Creditors

The liquidators have provided a detailed breakdown of the company's debts, revealing that the Ministry of Business, Innovation and Employment (MBIE) is the largest external creditor, with a claim of $1.62 million. However, the lion's share of the debt—$41.27 million—is owed to related-party creditors.

Among the related-party creditors, Cherri Holdings is the largest with a debt of $24.92 million, of which $24.9 million is owed to related parties and $10.89 million to external creditors. Cherri Global itself owes $11.27 million to related-party creditors, while Cherri Machinery owes $5.1 million to related parties, with a smaller amount of $8,464 owed to external creditors.

Overall, the companies' total external debt stands at $1.62 million, with MBIE being the primary external creditor.

Funding from the NIWE Scheme and Ongoing Issues

In November 2023, a $5 million loan was approved under the North Island Weather Events (NIWE) Primary Producer Finance Scheme to assist Cherri Global in the aftermath of Cyclone Gabrielle. However, only a portion of the loan was drawn down, and as of the latest report, $1.35 million remains owed to Crown Regional Holdings Limited (CRHL).

Regional Development Minister Shane Jones has defended the regional growth program, emphasizing that over half of the $257 million loan book under the former Provincial Growth Fund is at risk of impairment or default. This highlights a broader challenge for regional development initiatives in New Zealand, where many projects are struggling to meet financial obligations.

Asset Sales and Liquidation Progress

The liquidators have already sold most of the companies’ assets through an on-site auction, generating net proceeds of $89,000 after costs. However, several assets were subject to security interests and did not sell, meaning they will be collected by secured creditors.

As of the liquidation date, the companies’ debts totaled $666,525, with $97,248 collected during the reporting period. The collected amount is currently held in trust, pending transfer to the appropriate parties.

Uncertain Timeline and Ongoing Investigations

The liquidators are still in the process of assessing claims against third parties and have not been able to provide an estimated end date for the liquidation. A further report is expected in six months unless the process is completed earlier.

As the liquidation continues, stakeholders and the wider community are watching closely, hoping for a resolution that will provide clarity and justice for all involved parties. The case of Cherri Global serves as a cautionary tale for businesses and regional development programs alike, highlighting the need for stronger financial oversight and risk management practices.