Synlait enters trading halt to finalise $119m loan extension

The news: New Zealand dairy processor Synlait has entered a trading halt on the ASX and NZX as it seeks financial support from Chinese shareholder Bright Dairy over an extension to a NZD130 million ($119 million) debt pre-payment due today.

The numbers: Synlait, which is 39% owned by Bright Dairy, said the halt would remain in place until Tuesday, when it is due to report its half-year earnings and update investors on further plans to deleverage its balance sheet.

The context: Synlait's share price has plunged by around 65% over the last year, after a supply dispute with 20% shareholder A2 Milk and amid difficulties selling its Dairyworks subsidiary to reduce its debt levels.