THE co-owner of a Wagga-based grain business said he has apologised to creditors and would work with them to recover losses after the firm was placed under administration in late July.
Grainpro co-owner Dr Mario Bonfante told The Daily Advertiser that an administrator's review so far shows more than 200 creditors being owed about $6 million.
Ten employees are also affected by administration.
"There are flow-on effects, particularly farmers in drought being affected," Mr Bonfante said.
"I definitely feel for the farmers, particularly farmers who are unsecured creditors with Grainpro."
"It'd be difficult for anyone involved."
We're at the end of the line - we can't pass any losses or costs to anyone else.Tony Clough, farmer
Asked about the factors contributing to the administration, Mr Bonfante referred to the conclusion of the administrator's review once completed.
He said the effects of the situation has been "a living hell for me at the moment knowing that the company owes that money".
He said there is an asset pool of about $1.5 million, as well as contingency asset and stock worth about $2 million each.
An initial creditors meeting was held last week in Wagga resulted in a committee of eight creditors being established.
The committee will advise administrator Adam Shepard, at Setter Shepard, during his review.
The Daily Advertiser has contacted Mr Shepard's office a number of times but he has not yet responded.
The agribusiness was established in 2006-07 in Dubbo and is primarily involved in bulk grains markets.
The firm's headquarters then moved to Wagga in about 2014.
Mr Bonfante said it had an annual turnover of about $15 million in Dubbo before it grew to $45 million when it moved to Wagga.
Wantabadgery farmer Tony Clough, who has previous dealings with Grainpro but is not a creditor, said the situation was unfair on farmers.
"We're at the end of the line - we can't pass any losses or costs to anyone else," Mr Clough said.
"I'm a little conservative when it comes to buying and selling grain and hay.
"You need to deal with reputable firms out there who have been there for the long haul.
"They may be offering less but at the end of the day you know you'll get paid."
"I can understand farmers hanging out for a higher price, but you should deal with your local merchants where they'll give you service and reasonable prices."
Creditors will hold a second meeting within the next two weeks where they will vote on a deed of company arrangement.