Future looking bleak for Synlait

Synlait's survival would appear to depend on a major loan being approved from the company's largest shareholder. (Image: Michael Craig)

Brian Robins

Thu, 06 Jun 2024

It’s been one of the longest-running poker games in town and Chinese multinational Bright Dairy now holds the winning hand with its proposed $130 million loan to Synlait Milk, which – if supported by shareholders – will give it effective control.Since it would appear Synlait’s very survival hinges on receiving that loan, shareholder support would seem to be a certainty. But it is hard to see how a company valued by investors at just $85m can afford to borrow $130m without busting the balance sheet, almost irrespecti...

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