Ann: Synlait announces changes to Board of Directors, page-15

As a buyer of Dairyworks you won't be looking at an ever changing Synlait asset value. You'll be doing the usual due diligence on supply contracts, margins forward orders, inventory etc. I can't see it as being hard. Its basically cheese with different coloured labels on the front.

I was a bit surprised that a potential buyer fell at the last hurdle - can't import due to their internal regulations. I would have thought any potential suitor it would have been one of the very first question "Can I import this stiff into my country and if not what barriers do I face"

Elsewhere I have said Synlait itself is totally uninvestable. Firstly i reckon the thing should be wound up and assets liquidated.

But assuming that deosn thappen what other options are there. Banks seem to have run out of tolerance. As Synlait loose farmer suppliers stainless steel value moves closer to scrap value.

Capital raise seems the only way out. But why would Bright and A2 want to continue to throw good money after bad. They have already done this a few times and seen their investment value diminish afterwards.

As for a capital raise I have no idea how much they need. But essentially, with only $30m cash on hand
- now they need $177m to pay the nett accounts payable. (Receivables less payables)
- May they need to pay $6.7m in employee and contractor costs, with another $6.7m in June
- 17 June 2024. They need $1.723m to pay bond interest.
- 27 June $30m short term funding to be repaid
- 15 July $130m (at least to be repaid - or the proceeds of dairyworks sale. So I reckon at least $30m net)

That is without paying off or reducing the rest of the debt. Let alone addressing the problems with the bonds.

One question no one seems to answer is why would Bright and A2 want to put money in that only serves Bond Holders who are unsecured / subordinated risk carriers.

No matter how you slice or dice it, if there is a capital raise it can only result in enormous dilution of current shareholder value. Retailer holders are totally screwed.