Spring Gully clears $1m in debt

It was only in July this year that South Australian pickle and sauce manufacturer, Spring Gully Foods announced that it was entering voluntary administration with debts of $4.9m.

Yesterday the company announced that is has successfully paid $1m back to creditors, and expects to have cleared its debt entirely with three year’s time.

Spring Gully made its first dividend payment of 20 cents in the dollar to creditors, and will make further payments of eight cents in the dollar every quarter until creditors have been fully paid, The ABC News reports.

Kevin Webb, Spring Gully’s managing director said that the company has undergone a number of operational changes to ensure that it does not fall into financial trouble again.

 "Just recently, this week in fact, we've employed a new operations manager, we have worked hard on our planning and scheduling of product coming down the line so that they don't stop, we've got better processes in place for some of the lines that weren't as profitable as they should have been," he said.


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