A potential milk crisis in Bermuda has been averted thanks to a joint effort by Government and the private sector.

The two sides came together after Outerlea Dairy Ltd, which supplies 55 per cent of the Island’s fresh milk, petitioned the Supreme Court to be wound up in the face of mounting debts.

The Official Receiver and Registrar of Companies immediately applied to the court for appointment as Provisional Liquidator of Outerlea Dairy Ltd to help the farm and care for the herd.

Today Government praised three farm workers who continued to work at Outerlea Farm, even though they had not been paid for several months.

“To avoid delay in providing care and assistance to the farm and with due concern for the deteriorating health of the herd, the Official Receiver and Registrar of Companies immediately took action and applied to the Court for appointment as Provisional Liquidator of Outerlea Dairy Ltd,” a government statement said.

“By taking control of the company, the Official Receiver was able to protect the herd and ensure the orderly transition of the business to a new owner.

“The Official Receiver was quick to praise the efforts of the three members of staff who continued to work at the farm, even though they had not been paid for several months.

“The Department of Public Works and Belco assisted with continued supply of water and electricity to the farm, whilst Dunkley’s Dairy, the farm’s main customer, continued to supply a line of feed for the herd of 265.”

The farm operates on two government-owned plots of land in Smith’s parish comprising a total of more than 23 acres.

The statement added: “The Bermuda Government, with assistance from members of the private sector, has averted the potential for a shortage in Bermuda’s milk supply by intervening to ensure both the sale of the assets and the continued operation of the defunct Outerlea Farm.”

Creditors of the farm who are interested in the progress of the liquidation of Outerlea Dairy Ltd may contact the Official Receiver’s Office at 297-7574 or by e-mail at officialreceiver@gov.bm.