SML - Synlait

[The Kid]

Synlait is in critical financial trouble with big consequences of past strategic and operational disasters, says Keith Woodford

https://www.interest.co.nz/rural-news/139076/synlait-critical-financial-trouble-big-consequences-past-strategic-and

[Basil]

Talk about being in deep doggy doo !

[Minimoke]

Talk about being in deep doggy doo !

I am (not) surprised there hasn't been an announcement on the inventory loss due to poor manufacturing hygiene. I would have thought that kind of thing would actually be price sensitive.

3 CEO's in 5 years. Theres trouble at mill. Real major trouble.

I suspect A2 have written off their cash investment in Synlait. It seems that now Bright is loss making and China is securing all sorts of other IF and powdered milk supply there may not be any appetite to invest any further.

From every angle Synlait remains, in my view, totally uninvest able.

I dont know who would even show an interest in buying them out. They just seem to have it ingrained deep withing their DNA to be inept and incompetent.

[Minimoke]

Seems synlait now, is for all intents and purposes a Chinese company. They have just refinanced (and carrying an awful amount of debt) with ANZ Bank, China Construction Bank, Bank of China, Shanghai Rural Commercial Bank, HSBC, China Merchants Bank, Bank of Communications, Industrial Commercial Bank of China, and Bank of Beijing.

[Basil]

Seems synlait now, is for all intents and purposes a Chinese company. They have just refinanced (and carrying an awful amount of debt) with ANZ Bank, China Construction Bank, Bank of China, Shanghai Rural Commercial Bank, HSBC, China Merchants Bank, Bank of Communications, Industrial Commercial Bank of China, and Bank of Beijing.

Great idea to spread that toxic debt out so that no one bank gets too big a haircut when the almost inevitable happens.

[Minimoke]

Seems Mr Market isnt impressed, Down 7.5% to $0.37. Gee who remembers the heady days when it was over $13.00

Edit 10% to $0.36

edit 12.5% to $0.35