Credit Crunch delays NZ$90 mln milk plant near Gore
2nd Oct 08, 11:09am
The Credit Crunch has claimed its second major victim in the real economy. Yesterday PGG Wrightson's plan to buy half of Silver Fern Farms with funding raised from a share issue and some bridging finance fell over at the last minute because banks pulled their funding lines. Today the Southland Times has reported that construction of a NZ$90 million milk processing plant by Mataura Valley Milk near Gore has been postponed because of funding issues in the wake of the Credit Crunch. "There are a lot of factors, there are too many risks and things we don't know about. Everyone felt very nervous about banks blowing up left right and centre. That definitely coloured our thinking," Mataura Valley CEO Chris Shelley told the Southland Times.