Silver Fern Farms - the country's largest meat processor - admitted yesterday it needs recapitalisation following last year's failed $220 million merger proposal.
It would go to its 18,8000 shareholders within two months to raise tens of millions of dollars in new capital.
Management would not specify at its annual meeting yesterday how much Silver Fern wanted to raise from a cash issue to shareholders.
The subject did not elicit criticism or praise.
Industry sources believe that for Silver Fern to make the issue worthwhile, it would have to ask shareholders for about $10,000 each, equating to nearly $190 million, or close to the amount of cash sought from the failed $220 million merger.
Silver Fern also confirmed it was in negotiations with failed merger partner PGG-Wrightson over a damages claim.
However, management could not specify the amount involved.
More than 70 people attended the company's 61st AGM in Dunedin yesterday, the first under the Silver Fern rebranding, having formerly traded as PPCS.
Silver Fern chairman Eoin Garden said it was "evaluating recapitalisation options" following the "demise" of the PGG-W proposal, saying "this co-operative is not as well capitalised as others".
"We have to minimise risk to the company. Our own banking syndicate's members are all recapitalising their own balance sheets," he said during the meeting which lasted nearly two hours.
He cautioned that going for capital from offshore investors had become riskier with the credit crunch.
"It will be up to shareholders to decide on participation. We do it or leave it to someone else, and subsequently will see [equity] dilution," Mr Garden said.
A July proposal to refinance Silver Fern bonds due in the next few months was still in negotiation with banks, Mr Garden said.
Mr Cooper said so long as they continued to meet bank standards the bonds "should be refinanced".
South Waitaki farmers directors recently elected to Silver Fern's board were Murray Borthwick and Rob Lawson.
In the North Island East, Angus Mabin was re-elected unopposed.
