SML - Synlait Milk Ltd

[SailorRob]

So obvious why Bright is standing by its commitment to Synlait and putting in the $130m - deeds, not words. Nothing new to add to what I have written before.

Good interview with the new Chairman on what’s ahead for Synlait in article below.

The shares are going to struggle until the capital raising is out of the way (Bright has committed) and bond holders will get their monies back.

https://www.nzherald.co.nz/business/...NBRSFGXQCXN7E/
Paywalled

Do you think they would say that bondholders wont get their money back?

If indeed they will, then it's the greatest opportunity you have ever seen. How much additional capital have you sunk into this opportunity?

Roughly speaking buying bonds today, if you get your money back what will the return be?

[Bikeguy]

If Bright did not want this business or saw it as a lost cause they would not have signalled their intent with the loan, committing to the CR etc…
Clearly they are going to keep SML a going concern and may even take it over at some point, and until then everyone is going to be helping them reduce the SML debt further by sharing the pain of the upcoming CR, even A2,
If they don’t Bright may get what they want? The removal of A2 blocking stake in SML, the Chinese could buy SML without even blinking…

[Rawz]

Only two options ahead;

1) big cap raise to clear all debt and put $10m in the bank. Need to give confidence to the farmer suppliers

Or

2) Let the dog go bust and the different interested parties can pick apart the carcass.

[Lego_Man]

Only two options ahead;

1) big cap raise to clear all debt and put $10m in the bank. Need to give confidence to the farmer suppliers

Or

2) Let the dog go bust and the different interested parties can pick apart the carcass.

My question is what are they waiting for re: the capital raise?

They could have executed any stage in the last 18 months but as they have waited, SP dropping like a stone.

[Bikeguy]

Only two options ahead;

1) big cap raise to clear all debt and put $10m in the bank. Need to give confidence to the farmer suppliers

Or

2) Let the dog go bust and the different interested parties can pick apart the carcass.

I feel you are right, and I feel that if they were going to let it go bust they would not be sticking in the 130mil at this stage,

[Rawz]

My question is what are they waiting for re: the capital raise?

They could have executed any stage in the last 18 months but as they have waited, SP dropping like a stone.

Yeah doesnt make much sense. Maybe Bright were not keen for so long as it takes awhile to get support from china to invest substantial more money on top of what they have already put in? The managers had a lot to explain.

[Baa_Baa]

Ruth Richardson stepping down, Leon Fung will be appointed as one of Bright’s appointed directors https://www.nzx.com/announcements/432209

[Bikeguy]

My question is what are they waiting for re: the capital raise?

They could have executed any stage in the last 18 months but as they have waited, SP dropping like a stone.

It is a dam good question..

[Filthy]

670 shares on the buy side, and 129,577 on the sell side. punters trying to run for the exit. only to find its not there.....

[Filthy]

market cap only 96M now. reckon in less than a few days itll be half that.