Namoi Cotton, Australia's second-biggest cotton ginner, has been unable to fulfil its bank commitments due to soaring cotton prices last year. Following this, the firm is now left with no other option but to look out for a wealthy tactical investor who can finance its marketing operations.
ANZ Banking Group and Rabobank, bankers to Namoi Cotton, have allowed temporary waivers to the firm. They have also directed the firm to resolve all its financial issues within three months, as a condition to new US$ 600 million loan facilities.
Johnny Kahlbetzer's Twynam Agricultural Group is one of the major shareholders of Namoi. The value of the Group's investment in Namoi has plummeted 33 percent since August 2010.
Fibre2fashion News Desk - India
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