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NZ Farming Systems Uruguay can’t pay debt

NZ Farming Systems Uruguay will miss a deadline to pay an $18 million performance fee to PGG Wrightson – but it will pay some.The company was due to pay a performance fee due to cornerstone shareholder PGG Wrightson of nearly $18 million by the end

Liam Baldwin
Mon, 29 Mar 2010

NZ Farming Systems Uruguay will miss a deadline to pay an $18 million performance fee to PGG Wrightson – but it will pay some.

The company was due to pay a performance fee due to cornerstone shareholder PGG Wrightson of nearly $18 million by the end of this month

When the company released its interim results in February, chairman John Parker said he was confident it would be paid on time, but stopped short of guaranteeing it.

“We owe it, it will be paid,” he said then.

“A fair lump should be paid by the due date and if not paid by March 31 it will not be far afterwards.”

Since then, the cash-strapped company has sold a 2500 parcel of its Tobay farm in the east of Uruguay for $US8.5 million.

Of that, $US5 million ($7.1 million) will go towards the PGGW debt.

Mr Parker told NBR the focus of the company is to continue to develop its dairy operations as quickly as possible.

Under developed grazing land is on the market.

Most of the investment made on the Tobay farm since it was bought was spent on part of the property retained by the company, which includes two milking sheds.

The sold portion of the property was used for dry stock.

In February, the company posted a $US6.9 million interim loss but hoped to be in a breakeven position by the 2011/12 financial year.

Liam Baldwin
Mon, 29 Mar 2010
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NZ Farming Systems Uruguay can’t pay debt
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