A conditional contract for the sale of Central Otago's largest single dairy farm will take a few more months to negotiate, receivers say.
Big Sky Dairy Farm, situated on 1760ha near Patearoa in the Maniototo, has been on the market since October 2008.
Receiver Murray Frost, of Dunedin, said a conditional contract had been in place for "several months".
Negotiation on conditions were expected to continue for months, Mr Frost said.
"Things are progressing, although there are several conditions in the contract that we are working through with the purchasers.
"I'm reasonably optimistic that we can resolve those conditions," he said.
Mr Frost said the farm was still operational, with about 3300 cows being milked at present.
Milk solids production for the 2008-09 year was estimated at 1.1 million kg, and Mr Frost said production for the 2009-10 year was on a par or slightly above that.
"It is operating very well," he said.
Big Sky Dairy - one of New Zealand's largest single dairy operations - was placed in receivership in March 2007, and into liquidation in June last year.
The sale includes all livestock, nine dwellings, three rotary sheds, calf sheds, workshops, implement sheds, 1200ha of milking platforms, an additional 560ha of land, 387ha of leased support land, and more than 1 million fully paid Fonterra shares.
The latest receivers' report, dated March 19, stated the company received milk proceeds of $4 million between September last year and March.
Operating costs of the farm were $2.6 million during the same period, and in that time $900,000 had been paid to a general security holder.
The report stated $40,000 was left in the bank, and as at March, $4 million had been paid to the first-ranking general security holder.
"Based on current expectations of the value of the properties, we expect to settle in full the debt owed to the first-ranking general security holder following sale of the farms," it stated.
The receivers' first report, dated April 26, 2007, stated $17.3 million was owed to general security holders at the date of receivership.
Preferential wages and holiday pay had been paid, as had preferential PAYE and GST totalling $85,000, and it was expected the balance would be paid in full upon sale of the farm.
It was "unlikely" there would be enough money available to pay unsecured creditors, the latest report stated.
