TAMAR Valley Dairy creditors met in Launceston yesterday for the first time since the company entered voluntary administration and will vote in a few weeks on whether to recapitalise the business or sell it.
About 35 creditors attended the meeting, including owner Archie Matteo and his three children Jose, Claudia and Manuel, who all hold management positions within the family-owned company.
Administrator Glen Kanevsky said after the meeting the company would trade as normal for now.
He said a second creditors' meeting would be held before the end of the month where several proposals regarding the company's future would be voted on.
"Discussions are also continuing with a number of parties, including the state government, to finalise arrangements to support the restructure of the business," Mr Kanevsky said.
"At the same time, we are still pursuing proposals to either recapitalise or acquire the business, and expect to receive bids from a number of parties in due course."
He said all ongoing employee salaries and benefits would continue to be honoured.
A creditors' meeting was first held in April to discuss the company's future after it struck cash flow problems attributed to low sales and operational delays at the company's $20 million processing facility at Invermay, built to fulfil a five-year contract with Coles.
Tamar Valley Dairy entered voluntary administration on September 23 with $9 million in debts.
The company employs 110 workers supported by 23 administrative staff.
Australian Manufacturing Workers Union state secretary John Short said everybody, including the workers, had a vested interest in ensuring the company's survival.
"There is no benefit in liquidating as they've got a good name, good brand, and a good workforce," he said.
Economic Development Minister David O'Byrne confirmed the government had been working with the company and administrators.