Synlait Milk Ltd. (AU:SM1) has released an update.
Synlait Milk Limited faces challenges as it works on a deleveraging plan, anticipating a $130 million shareholder loan from Bright Dairy to meet obligations, while its subsidiary Dairyworks fails to attract a satisfactory bid for sale. The company is unlikely to meet several banking covenants and is in discussions for waivers, with its FY24 EBITDA forecast at the lower end of the $45-$60 million range due to various financial pressures. Despite difficulties, including a significant number of farmer suppliers submitting cessation notices, Synlait remains focused on maintaining milk supply and strengthening its financial position.
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