SML - Synlait

[Teitei]

You keep asking the question so it must be important to you. I can't answer on behalf of the directors. But my observation would be:

Risk reputations: - there is no risk. Everyone knows SML is a total and utter basket case. It says so in the reports. No one is going to say "Oh you are the director that drove Synlait into the ground". They will say "Gee you took the hospital pass and did the best you can for a terminal cancer patient"

Personal Liabilities: - I am sure they will have fully paid up comprehensive director insurance. It becomes moot if they can be liable for the actions of prior Board members.

No risk?

Hardly the case as there are many stakeholders (staff, creditors, suppliers, customers, financiers, shareholders etc) who would certainly remember just who lost them monies by tipping the company into receivership. Amazing that you think reputable individuals take their directorships & responsibilities so lightly.

Personal Liabilities - Insurance will only cover directors to a certain extent as the directors of Mainzeal found to their cost. Which individual will be a director heading into no future and receivership for sure? Again, it amazes me how lightly you think these individuals take their responsibilities and potential liabilities!

[snapiti]

No risk?

Hardly the case as there are many stakeholders (staff, creditors, suppliers, customers, financiers, shareholders etc) who would certainly remember just who lost them monies by tipping the company into receivership. Amazing that you think reputable individuals take their directorships & responsibilities so lightly.

Personal Liabilities - Insurance will only cover directors to a certain extent as the directors of Mainzeal found to their cost. Which individual will be a director heading into no future and receivership for sure? Again, it amazes me how lightly you think these individuals take their responsibilities and potential liabilities!

I think you are talking up directors way to much, I suspect half of them don't even reside in NZ and I am also confident Bright dairies interest are at the forefront of mind of many of them rather than the long list of other stakeholders you mention

[Minimoke]

No risk?

Hardly the case as there are many stakeholders (staff, creditors, suppliers, customers, financiers, shareholders etc) who would certainly remember just who lost them monies by tipping the company into receivership. Amazing that you think reputable individuals take their directorships & responsibilities so lightly.

I think you are over emphasising this and it is distracting you. Staff, creditors, suppliers, customers, financiers, shareholders etc ( I note you have left unsecured bond holders off your list) already know Synlait is in an extremely precarious position. They know they will get little or no money if Synlait goes belly up. They  have a well flagged debt default day of 15 July. There is zero hope of trading out of the debts due in the next 12 months. Whatever happens next will be subject to shareholder approval, or not. And that's not on the new Directors.

Personal Liabilities - Insurance will only cover directors to a certain extent as the directors of Mainzeal found to their cost. Which individual will be a director heading into no future and receivership for sure? Again, it amazes me how lightly you think these individuals take their responsibilities and potential liabilities!

Directors should worry if they allow the company to trade recklessly or if they fail to act with due dillignce and care.

But it worth noting that a Director needs to work in the companies best interests. Not Brights best interests. So consider that when we see the terms and conditions of the laon.

I have no idea where you get the notion I think they directors are taking their responsibilities lightly. I'm quite sure they are taking them very seriously. But they are new and Synlait is a basket case. Good luck to anyone trying to sue them (I can't say the same about the remaining long termers)

[Teitei]

I think you are talking up directors way to much, I suspect half of them don't even reside in NZ and I am also confident Bright dairies interest are at the forefront of mind of many of them rather than the long list of other stakeholders you mention

Of course Bright is foremost in their mind - only reason why they accepted the directorships in the first place. Now you are getting the picture.

[Teitei]

I have no idea where you get the notion I think they directors are taking their responsibilities lightly. I'm quite sure they are taking them very seriously. But they are new and Synlait is a basket case. Good luck to anyone trying to sue them (I can't say the same about the remaining long termers)

No risk?

No personal liabilities?

Those are your assertions, not mine.

[Minimoke]

Of course Bright is foremost in their mind - only reason why they accepted the directorships in the first place. Now you are getting the picture.

Gee. I'm very confused now. On one hand you say Director's are reputable people and won't risk their reputation or expose themselves to liabilities by joining the Synlait board.

And on the other hand you seem to ignore the key responsibility of a director which is to "act in good faith and in what the director believes to be the best interests of the company"

No risk?

No personal liabilities?

See post 915

[Teitei]

Gee. I'm very confused now. On one hand you say Director's are reputable people and won't risk their reputation or expose themselves to liabilities by joining the Synlait board.

And on the other hand you seem to ignore the key responsibility of a director which is to "act in good faith and in what the director believes to be the best interests of the company"
See post 915

Think a bit harder. It will become clear.

[Minimoke]

Bonds eh. What do I know. Lets see what Mr Market thinks. No bids at all this morning but someone is keen

You cannot view this attachment.

[Teitei]

Bonds eh. What do I know. Lets see what Mr Market thinks. No bids at all this morning but someone is keen

You cannot view this attachment.

And where are the shares trading at?

They should be close to zero, right if bondholders stand to lose anything.

No risk & no personal liabilities at all according to you for the new directors, right?

[Minimoke]

And where are the shares trading at?

They should be close to zero, right if bondholders stand to lose anything.

Currently under $0.40. Maybe just day traders. Maybe Mr Market isn't that smart after all.

No risk & no personal liabilities at all according to you for the new directors, right?

I am struggling to think of any situation that is fully risk free. But in this case I reckon risk is as close to zero as any new Director would like to be (other than the risk associated with looking after Brights interests and not Synlaits interests)

[Teitei]

Currently under $0.40. Maybe just day traders. Maybe Mr Market isn't that smart after all.

Just like Mr Market wasn't that smart when SKT was trading down below 20c?

And Yili wasn't that smart paying a huge premium to takeover Westland?

[Minimoke]

Just like Mr Market wasn't that smart when SKT was trading down below 20c?


And Yili wasn't that smart paying a huge premium to takeover Westland?

I don't recall when SKT was at below $0.20. Its a while since I have held them and been interested in following them.

I haven't said Yili wernt smart. And I don't know why you keep referencing them. Apples / Sausages!  Good on them. Obviously they got in "cheap" - they could see the opportunity and made the most of it. Same as a new owner of Dunsandle and Pokeno will do.

Eidt. Since you are highliting unrtealted compnaies as a sound resond behind your poison. I'l ljus tcheery pick one or two sa well.

Crafer Farms. Went bust owing over $200m

Waitonui Holdings dairy fans gone bust owing $43.5m (used to be valued oat over $120m

Dairy Nutraceuticals  went bust after having more liabilities than assets.

Van Leuween Dairy in receivership. $122m of assets sold. And then leased back to the Van Leuweens

McVitty Properties and Patoka Dairies go bust owing more than $70m

Organic Dairy Hub in liquidation

[Teitei]

I don't recall when SKT was at below $0.20. Its a while since I have held them and been interested in following them.

I haven't said Yili wernt smart. And I don't know why you keep referencing them. Apples / Sausages!  Good on them. Obviously they got in "cheap" - they could see the opportunity and made the most of it. Same as a new owner of Dunsandle and Pokeno will do.

SKT current sp is post 10 for 1 consolidation. Many of us loaded up at 17c during the CR (which everyone but everyone expected) and it has been a most pleasurable experience.

And imo, Bright sees the opportunity with SML just as Yili did with Westland. A bit more complex with SML due to its listed company status but end result, given the way Bright has played its chess pieces so far, will be the same. Up to existing shareholders what they want to do when the CR is underway.

[Minimoke]

SKT current sp is post 10 for 1 consolidation. Many of us loaded up at 17c during the CR (which everyone but everyone expected) and it has been a most pleasurable experience.

Good for you

And imo, Bright sees the opportunity with SML just as Yili did with Westland. A bit more complex with SML due to its listed company status but end result, given the way Bright has played its chess pieces so far, will be the same. Up to existing shareholders what they want to do when the CR is underway.

So we both agree Synlait, as we currently know it is a gone burger.

[Teitei]

Good for youSo we both agree Synlait, as we currently know it is a gone burger.

How so?

Like SKT or Sir NZ were gone burgers before  their CRs? Then we are indeed in agreement.