nfng, page-14

Nufarm strike deal with banks re debt.
September 27, 2010 - 11:34AM
Agricultural chemicals supplier Nufarm has secured waivers on its banking covenants in respect to the periods ending July 31, 2010 and October 30, 2010.

Nufarm also said today that its lenders had agreed to provide a funding facility for the period through to mid-December.

The company said the waiver agreement was finalised with banks that were a party to Nufarm?s core financing document and addressed all maturities falling due over the remainder of this calendar year.

Nufarm shares went into a trading halt earlier ahead of the announcement. They last traded at $4.05.

Earlier in the month, Melbourne-based Nufarm said in a market update that its net debt would be higher than previously estimated, in another breach of its financial obligations to its bankers.

Net debt at the end of Nufarm's fiscal year would be about $620 million, compared to its estimate of about $450 million provided on July 14.

On July 14, Nufarm also had downgraded its earnings forecast, saying net operating profit would be between $55 million and $65 million, well below guidance issued in March for an operating result of $110 million to $130 million.

Nufarm, one-fifth owned by Japan's Sumitomo Chemical, is due to report its results for the year to July 31, 2010, on Tuesday.

Nufarm's shares have dropped 61 per cent so far this year to $4.05 as sales of its key weedkiller, glyphosate, have slumped. Sales have been hit as the world's biggest producer, Monsanto, flagged in May it would cut prices of its Roundup glyphosate to shore up sales against generic products.

AAP, Reuters