Rural services company PGG Wrightson says it is not selling core operations, and insists it has complied with conditions it had in place with its banks.
The company is planning asset sales and raising more capital to shore up its balance sheet after renegotiating its $473 million debt package with its banks after a potential breach of its covenants.
In response to media reports, PGG Wrightson says it won't be selling its core operations, such as its Seeds and FruitFeds businesses.
The company insists it didn't breach the conditions it had in place with its banks, nor fail to comply with the stock exchange's listing rules to disclose its new banking arrangements in a timely manner.
PGG Wrightson repeated the company's cashflow is strong, and the future for the agricultural sector remains robust, of which it will be a beneficiary as spending by farmers pick up.