Business

Olam says creditors not putting pressure on lending costs

February 07, 2013

Singapore commodities firm Olam International Ltd. — AFP picSingapore commodities firm Olam International Ltd. — AFP picSINGAPORE, Feb 7 — Singapore commodities firm Olam International Ltd, which came under attack last November by short-seller Muddy Waters LLC, said it has not been under any added pressure from creditors to revise lending costs.

Olam’s Chief Executive Sunny Verghese, speaking at a results briefing, also said the company is reviewing its capital spending plans and free cash flow generation targets.

He said the review was a work in progress and Olam will give more specific guidance in the second half of April.

Olam, which is also under pressure for its streak of acquisitions, said in a surprise move it had ended its proposed US$240 million (RM741 million) investment in Usina Acucareira Passos, an integrated sugar miller in Brazil.

Analysts have projected higher financing costs for Olam and were watching for any signs it is reining in its capital spending plans and acquisitions. — Reuters

 

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