SML - Synlait

[SemiStrongForm]

Dare I say it, there may even be a scenario where A2M allow Synlait to go insolvent in order to bring the whole situation to a head. Insolvency would force the various takeover scenarios that have been endlessly discussed on here to a head. As well as opening up Synlait's assets, including Dunsandel that A2M wants, to possible acquisition.

This is a great point that I had potentially underweighted until now. This is a great opportunity for A2M to put some serious business issues behind them and allow them to refocus on their core business issues.

[Minimoke]

As an aside I note Synlait debt reported at 31 Jan 2024 was $559m. In today's announcement it is $585M

[Left Field]

NBR's Tim Hunter thinks "A2 Milk has SML's future in its hands" (paywalled article out today)

"The NZX listed milk processor faces bankruptcy if special meeting does not approve $130 million shareholder loan from Bright Dairy....."

[Teitei]

NBR's Tim Hunter thinks "A2 Milk has SML's future in its hands" (paywalled article out today)

"The NZX listed milk processor faces bankruptcy if special meeting does not approve $130 million shareholder loan from Bright Dairy....."

Bankruptcy?

He needs to get the terminology right - bankruptcy refers to individuals.

Companies go into receivership or liquidation when they become insolvent.

[Buzz]

Bankruptcy?

He needs to get the terminology right - bankruptcy refers to individuals.

Companies go into receivership or liquidation when they become insolvent.

And that's the level of quality reporting from NBR? No wonder they struggle to get and maintain subscribers.

[SemiStrongForm]

And that's the level of quality reporting from NBR? No wonder they struggle to get and maintain subscribers

Language aside Tim Hunter is the real deal.

[Teitei]

Language aside Tim Hunter is the real deal.

Tim is indeed one of the best investigative business journos around.

His article though is nothing insightful beyond regurgitating what SML itself stated and what other news media reporters were saying.

[Minimoke]

Just to update on the market. SP opened at $0.28. Now trading at $0.27 which values the company at $59,000,000
Bonds 135%

Oops. $0.265, $57.9m

Oops $0.26 $$56.8m

Opps $0.255 $55.7m

[Left Field]

Just to update on the market. SP trading at $0.27 which values the company at $59,000
Bonds 135%

$59 mill.

[Basil]

As an aside I note Synlait debt reported at 31 Jan 2024 was $559m. In today's announcement it is $585M

No doubt about it, strong growth there, debt growing at more than $5m per month !

[Minimoke]

$59 mill.

Edited to correct, though would have been obvious in following lines. But now $0.25 or $54.6m

[Minimoke]

No doubt about it, strong growth there, debt growing at more than $5m per month !

Had to pay that bond interest - and it was patently obvious they didn't have the cash for that.

[Teitei]

Edited to correct, though would have been obvious in following lines. But now $0.25 or $54.6m

Sp is cum-CR.

Looking forward to an even lower sp and the CR - going to be some serious $$$ to be made, just like with Sky TV.

[Minimoke]

Sp is cum-CR.

Looking forward to an even lower sp and the CR - going to be some serious $$$ to be made, just like with Sky TV.

You've been saying that for ages. But the capital raise isn't a new idea. Market has had plenty of time to adapt. I reckon the market is finally realising its better to get $0.25 in the hand now than $0.0025 on the books after the cap raise.

[Breezy]

You've been saying that for ages. But the capital raise isn't a new idea. Market has had plenty of time to adapt. I reckon the market is finally realising its better to get $0.25 in the hand now than $0.0025 on the books after the cap raise.

I'm still waiting for the OCA CR he predicted yonks ago, broken clock mentality.