Today's self-imposed deadline to resolve a compensation dispute between Silver Fern Farms (SFF) and PGG Wrightson (PGG-W) looks like being breached.
Both rural servicing company PGG-W and Dunedin meat co-operative SFF declined to comment, but it was understood there was nothing sinister in the delay and an announcement of a resolution was expected shortly.
The two companies have been in mediation since early last month to resolve a dispute over the amount of compensation to be paid by PGG-W to SFF for failing to complete a $220 million partnership deal last year.
The issue came to a head in February when PGG-W made provision in its accounts for $17 million in costs and compensation to be paid to SFF, an offer the meat company described as "inadequate".
Since early last month, the parties have been in mediation before former High Court judge Robert Fisher, QC, with the goal of reaching a full and final settlement.
