Never realized that John Key is an expert on booming Chinese babies. Quite amazing ...
Printable View
Bubs investor presentation today goes on about value destruction, but Synlait is probs worse for that. Will be interesting to see what washes out for SML this month.
Refinancing expected to be done this month and hopefully hear an update on asset sale.
Covenant modification was for test dates up to and including 31 July 2023 iirc
What are your thoughts on this one?
The revised covenants would have applied as at yesterday's test date - and presumably no breaches occurred otherwise we would have heard. The next time they need to test covenants may be in three to six months from now (I'm not sure of the precise dates)- they will need to have sorted the financing out by then or renegotiated the covenants. No particular urgency as of today
Fonterra just announced a massive drop in milk prices from $8 to $7 due to lower demand from China, likely to hit ATM and will hit Synlait for sure. Wheres that big new customer being on boarded? No announcement of bank refinancing or asset sales, starting to look a bit more risky for their financials.
"Fonterra Co-operative Group Ltd today reduced its 2023/24 season forecast Farmgate Milk Price range from $7.25 - $8.75 per kgMS, with a midpoint of $8.00 per kgMS, to $6.25 - $7.75 per kgMS, with a midpoint of $7.00 per kgMS.
Fonterra CEO Miles Hurrell says the revised forecast Farmgate Milk Price range reflects ongoing reduced import demand for whole milk powder from Greater China."