“Should never have done it. Bad mistake. Needed a kick in the bum[for it]. But in the big picture it makes no difference. But it’s an embarrassment,"he said.

Under a deed of company arrangement (DOCA) that is expected to be executed this week,unsecured creditors are expected to be paid between 81 cents and 98 cents in the dollar. A second meeting of creditors voted for the DOCA at a meeting in Melbourne in early September.

A buyer for the dairy operation is also expected to be announced within weeks.

The meeting was told that the DOCA would provide for $5 million that would be used “to firstly pay priority (employee) creditors in full and thereafter to pay a priority distribution to unsecured creditors”. Whatever remains from the proceeds of the sale of the dairy farm will pay down the secured debts of Harvey Norman subsidiaries which are owed $72.3 million.

In July,Harvey Norman told shareholders there could be a shortfall of as much as $29.13 million on what it was owed.

Harvey Norman’s dairy misadventure has been a costly exercise for the group that has prompted questions about why the retail giant known for selling televisions,other electronic goods,furniture and more branched out into dairy farming in the first place.

Coomboona is a vast dairy enterprise across two farms in the Goulburn Valley,covering about 4500 acres. The operation,which is currently in the hands of administrators,employs about 60 staff and is continuing to operate.

According to the minutes of the creditors meeting,Ferrier Hodgson's McCallum said it was the administrator's opinion that the DOCA proposal received from Harvey Norman Holdings should be accepted by creditors.

He said it would provide a more certain and significantly higher return to unsecured creditors than a liquidation which would most likely give them no return.

Regarding the likely sale of the vast Coomboona operation,Mr McCallum told Fairfax Media on Wednesday that he was negotiating with a shortlist of parties interested in the business.