Synlait Milk Ltd. (AU:SM1) has released an update.
Synlait Milk Ltd. is undertaking a significant recapitalization, with plans to issue $217.8 million in new equity to its two largest shareholders, Bright Dairy and The a2 Milk Company, in efforts to reduce its debt. The success of this financial restructuring, which is tied to a concurrent bank refinancing, is pivotal to the company’s survival, as failure to secure shareholder approval could lead to Synlait ceasing trading and entering formal insolvency. A Special Shareholders’ Meeting is scheduled for September 2024 to decide on the equity issuance, which is crucial for the company’s financial reset and future operations.
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