Mataura Valley an easier target for A2 after breaching covenants

Thu, 16 Jul 2020

Milk formula exporter Mataura Valley Milk has breached its banking covenants and said it will require a financial lifeline by December to keep its head above water - making it a likely investment target to help A2 Milk scale up its manufacturing capacity. The Southland processor plunged to a $47.1 million loss on the back of high start-up and loan-servicing costs in calendar 2019. It said it will face a funding shortfall of $26 million in 2020, with an additional funding line now necessary to keep its plant running past December. Mataura...

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