Fonterra faces liquidity issues as rivers of “white oil” dry up

Pundits, most residing in the National Party, just three years ago predicted the economy would surf high on “rivers of white oil” flowing from the dairy industry, but they now have cow pats splattered on their faces as Fonterra today announced another payout downgrade and signalled liquidity pressures.

Like Solid Energy, hubris behind Landcorp’s predicament

Solid Energy was this month placed in Voluntary Administration following its financial collapse. Landcorp may not be in quite the same pit as the coal miner, but negative cash-flow and rising debt likely mean it has breached banking covenants. It may be forced to sell good assets at the bottom of the market. Simon Louisson questions why?