1 00:00:00,200 --> 00:00:02,719 Speaker 1: Time for sin Lay update. We may have a lifeline 2 00:00:02,800 --> 00:00:05,160 Speaker 1: China's Bright deary who already owned thirty nine percent. If 3 00:00:05,160 --> 00:00:07,120 Speaker 1: you followed this story, they could end up taking two 4 00:00:07,160 --> 00:00:09,079 Speaker 1: thirds of the company. Shareholders are going to have to 5 00:00:09,160 --> 00:00:11,640 Speaker 1: vote on this. It's a recap plan and they'll do 6 00:00:11,680 --> 00:00:13,520 Speaker 1: this in about a month's time. Sin Lay's board chair 7 00:00:13,600 --> 00:00:15,960 Speaker 1: George Adams is with us. George, very good morning to you. 8 00:00:16,720 --> 00:00:17,239 Speaker 2: Good morning. 9 00:00:17,280 --> 00:00:19,520 Speaker 1: Make you're enjoying this. This is a fun time for you. 10 00:00:21,239 --> 00:00:23,240 Speaker 2: Yeah, it's certainly providing lots of entertainment. 11 00:00:23,239 --> 00:00:26,439 Speaker 1: Mike, I can the a two thing. Did we come 12 00:00:26,680 --> 00:00:30,479 Speaker 1: to this particular conclusion mutually we're all happy now or not? 13 00:00:31,560 --> 00:00:33,000 Speaker 2: We're all very happy. Make good. 14 00:00:33,600 --> 00:00:36,839 Speaker 1: That's sorted once and for all. Bright the Dairy. If 15 00:00:36,880 --> 00:00:39,959 Speaker 1: they end up taking two thirds, do they see what 16 00:00:40,040 --> 00:00:42,760 Speaker 1: others don't or are they just locked in? They got 17 00:00:42,800 --> 00:00:45,640 Speaker 1: to do something to save themselves. 18 00:00:46,120 --> 00:00:48,680 Speaker 2: Look, it's great, a very interesting company. It's very old company, Mike, 19 00:00:49,360 --> 00:00:52,120 Speaker 2: and I think like many of our farmers, they would 20 00:00:52,120 --> 00:00:57,440 Speaker 2: describe themselves as well as intergenerational investors in Derry. So 21 00:00:58,240 --> 00:01:01,960 Speaker 2: when this company was brought on as a shareholder in 22 00:01:02,000 --> 00:01:06,560 Speaker 2: twenty ten, I believe they were very keen that they 23 00:01:06,600 --> 00:01:09,319 Speaker 2: were there full long term and so that's what we've got, 24 00:01:09,400 --> 00:01:12,160 Speaker 2: a very long term committed sure. 25 00:01:12,400 --> 00:01:17,880 Speaker 1: Sure if you are used to leave your funds dropped down, yes, 26 00:01:17,920 --> 00:01:20,280 Speaker 1: I am oh good. Sorry the banks and where they 27 00:01:20,280 --> 00:01:22,000 Speaker 1: say are they happy with the way things are going? 28 00:01:23,200 --> 00:01:25,120 Speaker 2: The banks are yeah. So I mean as part of 29 00:01:25,200 --> 00:01:27,920 Speaker 2: our as part of our deliveraging the we had to 30 00:01:28,040 --> 00:01:32,280 Speaker 2: essentially completely refinance the business. So that's in process and 31 00:01:32,360 --> 00:01:35,360 Speaker 2: we have committed facilities from our banks as we speak, 32 00:01:35,440 --> 00:01:38,240 Speaker 2: which some text us through for another for another year. 33 00:01:38,440 --> 00:01:41,440 Speaker 1: Do they or does their view and the deals you 34 00:01:41,560 --> 00:01:44,520 Speaker 1: have with them, are they contingent in any way, shape 35 00:01:44,600 --> 00:01:46,319 Speaker 1: or form on what right there we may or may 36 00:01:46,640 --> 00:01:47,400 Speaker 1: not end up doing. 37 00:01:48,160 --> 00:01:52,440 Speaker 2: Yes. So essentially we have a capriage from break Cabrias 38 00:01:52,480 --> 00:01:55,040 Speaker 2: from A two, and we've got the bank refight and 39 00:01:55,160 --> 00:01:59,160 Speaker 2: all our intercontingently. So you know, we're we're working hard 40 00:01:59,160 --> 00:02:01,240 Speaker 2: to make sure that every thing happens on the same day. 41 00:02:01,480 --> 00:02:03,160 Speaker 1: And where do the farmers in the contract sit. 42 00:02:04,560 --> 00:02:08,480 Speaker 2: So the farmers essentially put us on notice, as you 43 00:02:08,560 --> 00:02:11,240 Speaker 2: will know, and what they were telling us, and I've 44 00:02:11,280 --> 00:02:13,600 Speaker 2: spoken to a lot of them, is that essentially they 45 00:02:13,600 --> 00:02:16,000 Speaker 2: would they would they wanted our advance rates to match 46 00:02:16,040 --> 00:02:18,360 Speaker 2: the market. We were probably behind a big ten percent 47 00:02:18,440 --> 00:02:21,720 Speaker 2: last year and they wanted the balance heat deleverage for security. 48 00:02:21,840 --> 00:02:24,760 Speaker 2: So we've matched the advanced rates this year and this 49 00:02:24,800 --> 00:02:26,960 Speaker 2: is the deleverage that they'll be looking for them. So 50 00:02:27,040 --> 00:02:29,640 Speaker 2: I think they'll be considerably more comfortable to start with 51 00:02:29,680 --> 00:02:32,200 Speaker 2: throwing cease notices once this is. 52 00:02:32,200 --> 00:02:35,320 Speaker 1: Done, fantastic. And if the ones who have left or 53 00:02:35,400 --> 00:02:37,960 Speaker 1: going to leave, could you change their minds or could 54 00:02:38,000 --> 00:02:40,679 Speaker 1: you bring people back on board if this thing goes 55 00:02:40,720 --> 00:02:42,600 Speaker 1: aheit In other words, could you solve the problem? 56 00:02:43,280 --> 00:02:47,519 Speaker 2: Yeah, we could. I mean we haven't had any substantial 57 00:02:47,680 --> 00:02:50,560 Speaker 2: even minor volume leave. Frankly, people have to give us 58 00:02:50,600 --> 00:02:53,840 Speaker 2: a two year cease notice. So at this stage it's 59 00:02:53,880 --> 00:02:55,960 Speaker 2: a look. I mean, I think it's a message to 60 00:02:56,040 --> 00:02:58,120 Speaker 2: the to the board of the business. You need to 61 00:02:58,160 --> 00:03:01,320 Speaker 2: sort your stuff out, and once you've done that would 62 00:03:01,320 --> 00:03:04,320 Speaker 2: be good. So genuinely, we have a group of very 63 00:03:04,360 --> 00:03:07,359 Speaker 2: loyal farmers and over time they've actually done pretty well 64 00:03:07,560 --> 00:03:10,680 Speaker 2: forcingly and biasonally, so I'm really filled for them. 65 00:03:11,080 --> 00:03:12,480 Speaker 1: I know which way you want the vote to go, 66 00:03:13,080 --> 00:03:15,280 Speaker 1: Will it go that way? Hand on hat? 67 00:03:16,120 --> 00:03:18,400 Speaker 2: I don't know hard. Look, I think I think the 68 00:03:18,520 --> 00:03:21,359 Speaker 2: vote that and again they're all contingent on each other. 69 00:03:21,480 --> 00:03:24,200 Speaker 2: So I think the vote for for for A two 70 00:03:24,320 --> 00:03:27,400 Speaker 2: will go well because clearly Bright or the majority of 71 00:03:27,440 --> 00:03:30,399 Speaker 2: the voting on the other side, the vote for the 72 00:03:30,400 --> 00:03:32,520 Speaker 2: Bright one I think is going to be closer. So 73 00:03:32,720 --> 00:03:35,160 Speaker 2: it's certainly, you know, a too indicated they'll support it. 74 00:03:35,160 --> 00:03:37,760 Speaker 2: So they're a third of the vote. So it means 75 00:03:37,800 --> 00:03:41,000 Speaker 2: that essentially it's still hangs in the balance with our 76 00:03:41,040 --> 00:03:43,560 Speaker 2: shareholders and as they did last month, one hundred and 77 00:03:43,600 --> 00:03:45,400 Speaker 2: thirty million their loane, they came out and they and 78 00:03:45,440 --> 00:03:47,960 Speaker 2: they and they voted, so it is genuinely in their 79 00:03:48,040 --> 00:03:50,000 Speaker 2: hands and encourage them to have their say. 80 00:03:50,240 --> 00:03:53,360 Speaker 1: If it doesn't cross, is it iba for the company? 81 00:03:56,160 --> 00:03:57,760 Speaker 2: Well pretty much, pretty much. 82 00:03:57,840 --> 00:04:01,080 Speaker 1: Yeah, good luck with that one, George. Appreciate your time. 83 00:04:01,120 --> 00:04:05,400 Speaker 1: George Adams sin Lay board chair. It's been a fascinating 84 00:04:05,440 --> 00:04:08,440 Speaker 1: story to follow. The votes and dunsandal in about a 85 00:04:08,440 --> 00:04:11,960 Speaker 1: month's time. For more from the Mic Asking Breakfast, listen 86 00:04:12,080 --> 00:04:15,040 Speaker 1: live to news talks it'd be from six am weekdays, 87 00:04:15,240 --> 00:04:17,320 Speaker 1: or follow the podcast on iHeartRadio.