Synlait has until 15 Julynl to pay back $130 mAnd they have...

Synlait has until 15 Julynl to pay back $130 m

And they have until the end of july to raise equity and sell things such as dairyworks. Failure to do so will allow the banking syndicate to make a call on the $410m worth of bank debt, and the Bond Supervisor can make a call on the $180m bond debt. This may affect Synliats ability to continue as a "going concern".

An equity raise is no easy thing. It is made complicated by the share ownership structure. Namely A2's 20% holding. And we know Synlait are in conflict with A2 - so don't expect a lot of cooperation on that front.

39% shareholder Bright have said they will support an equity raise. But the terms and conditions of that support are unknown. As are the views of the remaining 41% of shareholders. Bright may well end up buying Pokeno. Bright have said they'll provide up to $130m bridging loan (to cover teh $130m due 15 july). Its not enough. $180m is alsodue at the end of the year.

It is probably worth reflecting on Synlaits recent equity raises. Ll that seems to have happened is they have got more into debt and lessened profitability.

Its worth noting synlait say there is "significant doubt on the Group’s ability to continue as a going concern and, therefore, that it may be unable to realise its assets and discharge its liabilities in the normal course of business.". This makes Synlait totally uninvestable. And makes an equity raise all that more challenging."

All synlaits property is secured by ANZ Bank, Bank of China, China Construction Bank, HSBC, and Rabobank.. If I was a subordinated unsecured bond holder I would be very worried..

So where is A2 in all of this. Nowhere to be seen. So unlike Bright, they must be holding their cards very close to their chest. Or they are not at the table.