Salada Foods Ja. (SALF) – Loan restructuring

Subsequent to the financial year ended September 30, 1998, the company was advised by National Commercial Bank that all the loans had been transferred to FINSAC. Consequent to this, the company’s auditors Price Waterhouse have advised of their intention to reclassify all the company’s loans as short term loans as at September 30, 1998 in the absence of any agreement to restructure the loan portfolio.

Such a move would significantly alter the company’s balance sheet.

Additionally, the audited financial statements as at September 30, 1997 had indicated the need for a capital injection of $6.7 million. The company responded to this by seeking to pursue the Government’s expressed interest in the coffee industry and collaborated with them through the Agricultural Credit Bank in presenting a proposal to produce agglomerated coffee for the mainstream US and European markets. Unfortunately, the company is at this time still awaiting a response. FINSAC, who have indicated their willingness to consider our request are presently reviewing the company’s proposal. As soon as a response is received Salada will be in a position to finalize their audited financial statements for the year ended September 30, 1998.