Onion exporter and trader FlevoTrade from Dronten was granted a moratorium on payment by the court on Tuesday 10 September. The rumour mill in the onion sector about the company's finances had been going on for some time and this has now been confirmed. Last week, the company lost an appeal against onion growers about the payment of onions.
FlevoTrade Onions BV, which in addition to its main branch of onions also markets and exports other agricultural products, such as potatoes and carrots under the name FlevoTrade, was granted provisional suspension of payments by the Midden-Nederland court on 10 September. This means that the company has been granted provisional suspension of payments due to financial problems. The term provisional means that the creditors still have to give permission for this, which will take place on 18 December during the creditors' meeting.
Last week, FlevoTrade Onions lost an appeal against several onion growers regarding the payment of onions. The case dates back to 2021 and concerned purchase agreements that had been terminated on the basis of quality, but where part of the onions had already been delivered and sold. As a result, the growers were unable to market their product. Last March, the company was ordered to pay approximately €70.000 to the growers, after which the company appealed. This appeal was therefore rejected by the court last week.