Ann: SML Announcement - Supreme Court Update, page-292

Originally posted by Len

Hi minimoke, I must say I am having trouble understanding all of this. But, what I think I know is this. Synlait buys a property only after covenants were removed, then it builds a plant. A court reinstates the covenants. So they built the plant during the time there were no covenants, so the plant can stay. But now the covenants have been reinstated they can not build or extend any more of the plant. Would this be the correct way to understand it?

Hi minimoke, I must say I am having trouble understanding all of this. But, what I think I know is this. Synlait buys a property only after covenants were removed, then it builds a plant. A court reinstates the covenants. So they built the plant during the time there were no covenants, so the plant can stay
Sorry Len, you are incorrect. I suggest you go back to my post at the beginning of this thread which lists the timeline in details. (Its easy to understand the confusion - it is pretty complicated. And not helped by Stonhills mess they made of the legal process.

Essentially synlait started building as soon as they bought the land - well before they unconditionally settled.

(no one has taken me up on this yet - how is it they managed to start building so soon!)

But now the covenants have been reinstated they can not build or extend any more of the plant.
They can build and extend however they like - provided it is on land that is not covered by the covenant. I don't think there is much much room to extend on the Covented land as this seems to be pretty well built out all ready. (makes you wonder why they didtn do this in the first place. The bit they did build on must be more valuable)

Edit: Short answer. Synlait begin construction May 2018. High Court extinguished covenants November 2018.