LIVE animal exporter Wellard Limited has confirmed breaching banking covenants set for December 31, 2016.
In a statement to the Australian Stock Exchange, the exporter said it was “working productively” with finance providers with a view to a waiver or a change of those financial covenants.
Wellard previously reported breaching financial undertakings on June 30, 2016 and was expected to breach “certain financial covenants” set for September 30 and December 31.
The breaches regarding June 30 and September 30 were waived.
Chief executive Mauro Balzarini said while trading conditions for the first half of 2017 would result in a loss, improved trading conditions were expected to produce a second half profit.
Wellard experienced a bruising lead-up to its November 29 annual meeting, when minority shareholder Butt Nominees Pty Ltd (which holds 14.4% stake of Wellard shares) issued a statement saying it would vote against the re-appoint of Greg Wheeler as director.
Instead, it spruiked Butt Nominees director Tyron Dennison as incoming Wellard director while also slamming the company’s remuneration report.
The Butt statement claimed Wellard’s initial public offering was one of the worst performing IPOs of 2015, with shares slumping about 80%.
But there was some better news late in 2016, with Wellard receiving approval to export beef cattle to China from the Australian Department of Agriculture and Water Resources (DAWR).