Nufarm boss Doug Rathbone is meeting the company's cornerstone investor, Japan's Sumitomo Chemical Company, in the United States this week to discuss its shock earnings downgrade and the revelation it won't meet one of its key debt covenants.
The value of Sumitomo Chemical's 20 per cent stake in Nufarm fell by $483 million last week after the Australian pesticides maker halved its full-year profit guidance to between $55 million and $65 million, The Australian Financial Review reports
Nufarm stock closed at a fresh seven-year low on Friday of $3.40, having tumbled 35 per cent in two days.
Nufarm also raised its year-end gross debt estimate by $100 million to $450 million and said it would be in breach of its bank interest cover covenant for the year ending July 31.
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