22 Apr 2009

Compensation talks continue after deadline passes

1:03 pm on 22 April 2009

Silver Fern Farms and PGG Wrightson are continuing to negotiate a compensation deal for their failed partnership plan despite passing a deadline set for completion of their talks.

The rural services company was lined up to buy a 50% stake in the meat co-op, but defaulted on the partnership when it was unable to raise the money as a result of the world financial crisis.

PGGW offered $10 million in compensation but Silver Fern rejected the offer.

In March, the two parties went into talks mediated with a High Court judge after they could not reach a deal.

The talks were to have been concluded by last weekend but both parties say they are continuing to negotiate.

Silver Fern Farms says it now expects to be able to reach a deal within the next few months, but would not give a more detailed timeframe.