Friday, February 27, 2009

Sighs of relief over PGG results

The refinancing of $475 million debt by PGG Wrightson was a welcome announcement yesterday and one which immediately restored some confidence to the company's previously shaky share price ($0.79 cents at close of market).

But this is just the beginning for Norgate with the ongoing dispute with Silver Fern Farms dampening the way ahead.

Wisely, Norgate was careful not to divulge much more on the compensation issue but did say that the $10 million offer in compensation was not put together lightly. He also mentioned the proposed supply chain and procurement deal put forward would add to the value of the compensation if accepted.

But if Cooper keeps talking tough, and looking for the easy way to bail out Silver Fern Farms debt, Norgate's refinancing plans may mean little, particularly if the current economic climate persists or deteriorates further.

It's up to Cooper now.

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