Mackay Sugar has released further details of its plan based on recommendations from corporate advisory firm Kidder Williams
As covered previously in the WIRE, Mackay Sugar (MS) released an overview of its strategic plan based on recommendations from corporate advisory firm Kidder Williams.
The company was advised to sell assets and charge a levy to growers for capital expenditure and reduction of its $212m debt.
MS has released further details of the plan. We met with management to discuss the company’s position.
The MS Board has endorsed the majority of the principles in Kidder Williams’ recommendations:
- Sale of the cogeneration plant
- A $2 per tonne levy contribution from growers/shareholders for asset improvement
- Cost reductions/revenue enhancements in Operations, Cane Supply and Admin
Noteholder consent is not required for asset sales if more than 50% of the net proceeds are used to repay debt or purchase/redevelop productive assets.
FIIG understands it is MS’ intention is to raise $140m in the short term for debt reduction and capital expenditure.
Further details of the plan can be found here.