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Speaker 1: Now struggling dairy company Sinlay has asked the shareholders to

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Speaker 1: vote in favor of a one hundred and thirty million

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Speaker 1: dollar loan from its biggest shareholder, which is Chinese Bright Dairy.

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Speaker 1: Sinlay says without the loan, it will need to cease

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Speaker 1: trading or it will need to initiate insolvency procedure proceedings

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Speaker 1: in Rowena Duncan from the country is filling in for

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Speaker 1: Jamie mackay with us. Now, hey, roe, hey, he sounds

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Speaker 1: like a really serious situation. What alternatives do they have?

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Speaker 2: Yeah, well, not many. It's been brewing for a week while.

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Speaker 2: So back in April, Sinlay announced there that they had

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Speaker 2: made a ninety six million dollar first half loss. Now

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Speaker 2: this was compared to an eight point four million dollar

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Speaker 2: profit twelve months ago. So that was for the six

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Speaker 2: months that ended in January. So that was when they

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Speaker 2: won that extension because the one hundred and thirty million

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Speaker 2: dollar debt repayment was due at that time, so they

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Speaker 2: extended it through until the fifteenth of July. Now, between

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Speaker 2: now and then, they announced their upcoming forecast for the

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Speaker 2: current season and they matched it to Fonterra. So basically

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Speaker 2: sitting on an eight dollar payout. Remember King's Birthday. Monday,

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Speaker 2: they made an announcement on the Australian Stock Exchange because

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Speaker 2: obviously the New Zealand market was closed for the public holiday,

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Speaker 2: and that's when they explained that their financial woes had worsened.

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Speaker 2: More than half of their suppliers had indicated they wanted

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Speaker 2: to leave sin Lays. Of course that was when they said, right,

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Speaker 2: I want to stop supplying my milk. They have to

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Speaker 2: wait two years, so there's like a two year holding

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Speaker 2: period before they can do that. And then, of course

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Speaker 2: Bright Dairy is one of its largest shareholders. There's an

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Speaker 2: associated company from Bright Dairy who have put forward this

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Speaker 2: one hundred and thirty million dollar lifeline. So this debt

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Speaker 2: has to be paid on the fifteenth of July for

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Speaker 2: shareholders will now vote for it at a special general

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Speaker 2: meeting which has been sharedulled four days before the loans

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Speaker 2: due on July eleven. Look, they've had their dairy works

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Speaker 2: up for sale, they haven't had any buyers of that.

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Speaker 2: Their share prices month to seventy one percent in the

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Speaker 2: last twelve months. This is probably as dire as it's

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Speaker 2: going to get. Heather Obviously they've had changes at the

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Speaker 2: top as well, with a new chair coming on board

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Speaker 2: this year. It's just it's a real challenging time for them.

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Speaker 2: And yeah, I know a lot of sin Lay suppliers

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Speaker 2: are very worried about what lads are here.

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Speaker 1: You're too, right, ro thank you for filling us and

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Speaker 1: really appreciate Rowena Duncan, who is from the country. Sounds

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Speaker 1: like it comes down to a two and whether a

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Speaker 1: two goes ahead is a very influential shareholder. Whether it

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Speaker 1: goes ahead with it is the question.

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Speaker 2: For more from Heather Duplessy Allen Drive. Listen live to

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Speaker 2: news talks he'd be from four pm weekdays, or follow

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Speaker 2: the podcast on iHeartRadio.