Synlait's Business Saved from Receivership: A New Hope for Farming in Canterbury
Synlait's Financial Rescue
Debt-ridden milk producer Synlait is back from the brink of receivership after a meeting in Canterbury's Dunsandel. Shareholders have voted in a landslide decision to approve a $218 million cash injection from Bright Dairy, increasing their stake to 65%. Synlait's independent chairperson George Adams emphasized, "The seriousness of today's resolutions should not be understated." If the resolutions had not passed, Synlait would have faced insurmountable debt issues.
Shareholder Sentiments and Future Plans
- Majority votes registered online, with over 95% in favor.
- Bright Dairy's director Julia Zhu stated the need for collective effort to ensure a successful turnaround.
- Relief for Synlait's 1400 workers, including long-time employee David Williams.
Synlait struggled due to performance issues with its $450 million processing plant in Pōkeno, leading to substantial losses. Adams reiterated, “This is business, you’re never out of the woods.” Following the vote, the company aims to make the Pōkeno plant profitable within two years.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.