RED Rooster founder Peter Kailis is seeking repayment of about $1 million from his son's olive oil business, which was placed in receivership because it couldn't repay its debts.
Western Australia-based Kailis Organic Olive Groves has been hit by the weak global olive oil market, diluted by oil from the ailing economies of Greece, Italy and Spain.
Prices for extra virgin olive oil in Italy have fallen 18 per cent in the past 12 months to €2.43 a kilogram ($3.02), according to the International Olive Council. In Spain, prices have fallen to €1.79 and Greek producers are being paid €1.84 a kilogram, The Australian Financial Review reports.
Peter Kailis's claim, lodged with receivers KordaMentha, ranks behind Westpac Banking Corp's debt, which has risen from $15.5 million to as high as $20 million since receivers took control of Kailis Organic Olive Groves late last year.
KordaMentha is looking for a buyer who will pay as much as $20 million before the company's olives are harvested in April. A buyer from Asia or America is among the likely candidates.
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