PGW - PGG Wrightson

[Misc]

Old news of the secured debt maybe ... but what is the extent of the unsecured exposure for farm supplies and services provided by PGW here? A NZX disclosure should have been made by now imo.

M

[Snoopy]

Old news of the secured debt maybe ... but what is the extent of the unsecured exposure for farm supplies and services provided by PGW here? A NZX disclosure should have been made by now imo.

M

The PGW Finance Exposure to Krafer (sp?) farms is $25m. That figure has already come out in the media. There are 315m PGW shares out there. So $25 represents 0.8c per share. Not good news, but not exactly a company breaker either.

Of course bankruptcy doesn't mean that $25m is lost. It may just take a while to get the money back and PGW may not get all the money back, depending on what happens with the farm sales.

There is a provision in the accounts already for $3.627m of doubtful debt finance receivables and $3.02m doubtful debt 'other' receivables. Net overall receivables were $156.1m at balance date, down from $210.8m in the previous year. More than likely PGW supplies will take a hit, but how much is already provided for in those bad debt provisions remains to be seen.

SNOOPY

[Dr_Who]

Looks like PGW For Sale sign is up.

Maybe the Chinese can pick this one up for cheap?

Why would the Chinese want to buy a NZ based rural servicing company employing thousands of people? Resources or brands - that's what the Chinese are looking for.

PGW is now in deep deep financial strife. Banks have given the company until 31 March 2010 to repay $200m.

Announcement... Chinese interest

[Balance]

Announcement... Chinese interest

Very positive for PGC who has 20% of PGW.

PGC will probably now sell to the Chinese.

Glad the Chinese are prepared to take on PGW. Good one!

[Dr_Who]

One of the condition is PGW have to raise $200m to cover debt.

I suppose no rush to buy yet.

[bung5]

This is becoming to common. Leveraged this up a week ago just the same as did with FPA and Nuplex. Sell executed.

[stone small green]

sold all mine at 0.88..
Pgw doesn't follow the trend, that's why i'm not happy.

[Doyle]

The mere fact that someones willing to do a placement at 88 cents, suggests that the cap raising could go well. This is great great news. But agree no real hurry.

Discl: Hold PGW

[stone small green]

i think the price will go down to about 75s. or might be further,
no good following the rush

[Doyle]

This changes the whole fundementals though. All of a sudden a 1 for 1 right issue at 50 cents looks completely plausible, maybe they can even get a good placement going and only have to supplement it with a 1 for 3 at 60 cents. This announcement makes a cap raising look completely acheivable, where as halfway through the PGC raising I was really starting to doubt PGW's ability to raise capital. The only major hurdle left is that RPI is porbably bordering on incolvency, judging from the rpc announcement out today. My guess is RPI is looking for a buyer for its NZS shares (Agria again???) and will capitalise its losses there in order to take part in any cap raising