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Namoi Cotton signs restructuring implementation agreements
23 Sep '20
1 min read
Pic: Shutterstock
Namoi Cotton Ltd recently announced executing binding implementation agreements with Louis Dreyfus Company (LDC) for restructuring its joint venture partnership, Namoi Cotton Alliance (NCA). The restructuring is part of Namoi’s overall strategy to reduce its exposure to cotton lint trading volatility and associated debt, while improving its ginning and associated service offerings for Australian cotton growers.
The restructured joint venture will consist of two partnerships, NCA and a new joint venture partnership to be called Namoi Cotton Marketing Alliance (NCMA). NCA will wind down its existing trading and marketing operations while Both establish NCMA—a 15:85 joint venture partnership between Namoi and LDC respectively—to trade and market Namoi cotton in future, according to a company press release.
LDC will assume responsibility for funding the future trading and marketing operations of NCMA. This restructure will have no impact on existing NCA cotton lint contracts with growers.
The restructured joint venture will consist of two partnerships, NCA and a new joint venture partnership to be called Namoi Cotton Marketing Alliance (NCMA). NCA will wind down its existing trading and marketing operations while Both establish NCMA—a 15:85 joint venture partnership between Namoi and LDC respectively—to trade and market Namoi cotton in future, according to a company press release.
LDC will assume responsibility for funding the future trading and marketing operations of NCMA. This restructure will have no impact on existing NCA cotton lint contracts with growers.
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