Shareholders in New Zealand Farming Systems Uruguay have approved a loan extension by the majority owner to give the company more time to look at capital raising options to pay off its debts.
The loan from Olam International, which owns 86% of the company, will be extended by 12 months to December 2012 and increased from $US85 million to $US110 million.
Minority shareholders were told that if they did not approve the loan extension, Olam would look at selling off assets in the company.
Olam abstained from voting.
The loan enables the company to continue developing its dairy farms in Uruguay.
The company abandoned plans last month to raise $US120 million through a rights issue because of minority shareholder opposition.
Chairman Vivek Verma says the 12 month extension will give the board time to look at other capital raising options.
Livestock numbers are expected to rise from 62,000 in 2011 to 75,000 this year, while milk production is picked to rise from 105 million litres to 190 million litres.
Mr Verma says despite running over budget on costs, a drier than expected spring and falling milk prices the company is sticking with forecasts that it will be close to break even on net profit.
