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Agria delays $10m debt repayment
TIM HUNTER
Last updated 09:50 30/10/2012
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PGG Wrightson's controlling shareholder Agria has obtained an extension on a $10 million debt it was due to repay by tomorrow.
New Zealand company Livestock Improvement Corporation, which loaned the money, told the stock exchange late yesterday its talks with Agria about repayment were continuing.
"To enable these discussions to continue, and to give Agria time to source additional funds to enable repayment, the payment date for these amounts has been extended," LIC said.
Payment of at least half the money is now due by December 19, with the balance payable by March 2014.
Interest on the loan has been increased "to reflect the extension" LIC said. A company spokesman said the rate remained confidential.
Agria, a New York Stock Exchange listed, Cayman Islands registered, Singapore-controlled company with offices in China, borrowed the money to help finance its purchase of shares in rural services company, PGG Wrightson.
In NYSE filings Agria has said if it had to repay the loan on the due date it might have to sell part of its PGG Wrightson stake.
Agria owns 80.8 per cent of Agria Asia, which owns 50.22 per cent of PGG Wrightson.
LIC's loan ranks behind a $25m loan to Agria provided by ANZ, also due for repayment on October 31. Agria has said the bank has agreed terms to extend the loan.
LIC is a farmer owned co-operative providing scientific analysis services to dairy, beef and deer farmers. In the year to May 31 it reported a net profit of $24.4m on revenue of $177.2m.
Its shares were unchanged yesterday at $4.95, valuing the company at $146m.
An earlier version of this story incorrectly said the $25m loan due for repayment on October 31 was provided by BNZ.
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