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Hot Topic NBR Focus: GMO
Hot Topic NBR Focus: GMO
1 mins to read

NZFSU seeks waiver for new loan


New Zealand Farming Systems Uruguay Ltd is seeking a waiver from its banking syndicate so it can take up a new short-term loan it has arranged with Banco Republica, a Uruguayan local government bank.

NZPA
Wed, 18 May 2011

New Zealand Farming Systems Uruguay Ltd is seeking a waiver from its banking syndicate so it can take up a new short-term loan it has arranged with Banco Republica, a Uruguayan local government bank.

The loan, for $US30 million ($US38 million), can be drawn down in stages and is repayable a year after the initial uplift of funds. But to take up the loan its existing banking syndicate has to lift a cap of $US120m for total liabilities.

The company said it was in discussions with its bank syndicate to obtain a waiver and would update shareholders in due course.

The company is also forecasting a loss of $US8.3m before interest and tax for its 2010/11 year, which is an improvement on the $US2.9m loss it was forecasting in February. The improvement is due to higher milk prices and higher milk production, offset by some higher costs.

Olam International Ltd is offering 70 cents a share in a full cash takeover of Farming Systems Uruguay. The company has issued don't sell guidance pending evaluation of the offer.

NZPA
Wed, 18 May 2011
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NZFSU seeks waiver for new loan
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