Dairy producers Murray Goulburn (ASX: MGC) have reported another full year loss as it struggles with three legal battles.
Whilst the group's loss was less than FY17, up from a loss of $370.8 million to $45.9 million in FY18, the company has been generating far less revenue.
The company says the results reflect the cessation of its business operations and the sales of its operating assets and liabilities to Saputo Dairy Australia in May 2018.
The group sold those assets to Saputo for $1.3 billion, generating a $35.9 million gain on the sale. $545.9 million of those funds were put towards repaying group debt.
These results come as Murray Goulburn fights three legal battles.
In April 2017, the ACCC commenced legal proceedings against MG and two former officers of MG in the Federal Court. This process is ongoing, with the two parties currently attempting to reach a resolution.
The dairy producer is also embroiled in two class actions brought by Webster and Endravour River.
The Webster class action, brought in 2016, alleges MG contravened the Corporations Act by making misleading or deceptive statements. This class action has not been set down for trial, with the next case management hearing listed for 21 September 2018. The company says the timing and conclusion for this proceeding remains uncertain.
More recently, in August 2018, a second class action was brought against MG by shareholders of the MG Unit Trust alleging the company again made misleading or deceptive statements in a product disclosure statement. The first case management hearing in the proceeding is listed for 21 September 2018.
The board of MG has not announced any dividends for the FY18 period. Payment of dividends were suspended in May 2017 with the group's dividend/distribution reinvestment plan being terminated in May 2018.
Shares in Murray Goulburn are down 9.1 per cent to $0.3 per share at 12.15pm AEST.
Never miss a news update, subscribe here. Follow us on Facebook, LinkedIn, Instagram and Twitter.
Business News Australia
Get our daily business news
Sign up to our free email news updates.
Help us deliver quality journalism to you.
As a free and independent news site providing daily updates
during a period of unprecedented challenges for businesses everywhere
we call on your support