Synlait puts finance boss Rob Stowell in charge of Dairyworks sale

Synlait has made management changes to speed up the sale of Dairyworks. Photo / NZME

Debt-laden dairy company Synlait Milk has made its chief finance officer Rob Stowell responsible for speeding up the sale of Dairyworks.

In his newly created role of chief commercial officer, Stowell will be also responsible for the company’s North Island strategic assets review, a potential equity raise, and Synlait’s href="https://www.nzherald.co.nz/business/too-much-capacity-too-much-debt-synlait-milk-thrown-a-lifeline/TV777N7TWNG4REKCG5OJVWENFE/" target="_blank">banking syndicate relationship.

“Rob’s long-serving Synlait experience and strength of relationships will allow these workstreams to be accelerated with pace,” Synlait said.

The sale of consumer goods maker Dairyworks, which is on Synlait’s books as being worth $120 million, will go some way towards alleviating the company’s debt problems.

The company also has its underused factory at Pōkeno up for review.

Stowell would retain responsibility for the company’s information services, risk, legal, and governance functions, the company said.

Meanwhile, Synlait’s Charles Fergusson, who has responsibilities for on-farm excellence, business sustainability and corporate affairs, has been made acting CFO.

Fergusson initially qualified as a chartered accountant with KPMG and held a variety of senior finance roles at Fonterra.

The appointments are effective immediately.

Synlait said it would start a search for a permanent CFO.

Synlait this month said it had won an extension for a $130m debt repayment after asset impairments plunged the company into a $96.2m loss for the first half to January 31.

The loss compared with a $4.8m profit in the previous corresponding period.

It also said it had a letter of support from 39 per cent shareholder Bright Dairy, and banking amendments, including an extension to the $130m “pre-payment”, which fell due on March 28.

The company is just under 20 per cent owned by a2 Milk.

Synlait’s shares last traded at 63¢, having dropped 70 per cent over the past 12 months.

The company’s $180m in NZX-listed bonds, which fall due in December, were last quoted at a yield of 57 per cent.

Jamie Gray is an Auckland-based journalist covering the financial markets and the primary sector. He joined the Herald in 2011.