Synlait Milk in trading halt to finalise $130m loan extension

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File photo. Synlait Milk has been put into a trading halt at its own request as it continues talks on repayment of a $130m loan.
Photo: RNZ

Specialty dairy company Synlait Milk has been put into a trading halt at its own request as it races to arrange the repayment of a $130 million loan.

The company said it needed more time to talk to its bankers and major shareholder about the repayment of the loan.

“SML has requested a trading halt … to provide it with additional time to finalise separate discussions with its banking syndicate regarding an extension to the $130 million prepayment obligation due on Thursday, 28 March 2024, and with its major shareholder, Bright Dairy, regarding the provision of financial support.”

It said the halt would remain in place until Tuesday when it is due to report its half year earnings.

Synlait has been under financial pressure over the past year from weaker sales, lack of buyers for its Dairyworks business, and the need to reduce its debt levels.

The company is also in dispute with its major client A2 Milk, which plans to end Synlait’s exclusive manufacturing and supply rights for infant milk formula.

Synlait’s share price has plunged by nearly 70 percent over the past year.