Cubbie Station irrigation farm has buyer in sight

The Cubbie Station irrigation and cotton farming operation in southeast Queensland, which went into administration in 2009, is close to being sold.

A consortium led by Eastern Australia Agriculture that includes US hedge fund Sankaty is in the final stages of acquiring Cubbie Station, according to a report by the Australian Financial Review.

It says Goldman Sachs, which has been hired to sell the operation, has entered into an exclusivity agreement with the consortium.

The irrigator breached banking covenants with Suncorp and National Australia Bank in 2009.

According to the latest creditors’ meeting, the Cubbie group owes $491 million but cannot feasibly repay or reduce the majority of the borrowings without 10 years of full cropping at above historical average prices.

Bidding closed for the station in July.

McGrathNicol, the reciever, has declined to comment except to say: "The sale process for the Cubbie Group is still ongoing and bidder details are confidential."