Source: Solomon Islands
Production at Noro for the Soltai Fishing and Processing Limited (SPFL) has finally started this week after funds have been secured and will be injected by Tri-Marine and National Provident Fund (NPF).
Under a new agreement which is yet to be sealed, NPF will provide a $50million (USD 6.85 million) loan while Tri-Marine will provide the other half to give a $100million (USD 13.7 million) capital injection to refloat the company.
Soltai had been out of production for the last four months affecting the canned tuna products and its workers.
Soltai General Manager Thomas Dorku told Solomon Star that production would resume this week.“Production is resuming 21 July 2010,†Mr. Dorku said.
Tony Hughes, Chairman of the Soltai board of Directors on Friday said negotiations with NPF have been completed and arrangements are being made for draw-down of the $50m loan and repayment of existing bank debt.
Mr. Hughes said the funds will enable Soltai to put all its debts on a current basis for the first time for many years.
“And will enable new investment in machinery, equipment and buildings to support higher levels of production.
“This in turn is expected to enable Soltai to operate profitably and sustainably, something it has never been able to do over its long history,†the chairman said.
NPF Chief Executive Officer (CEO) Tony Makabo said a draft agreement was still under discussion and preparation of the necessary documents was now underway.
Mr. Hughes is currently overseas and will return early next month to finalise the draft agreement between the existing and new shareholders.
A signing ceremony will be held to seal the agreement.
A Soltai officer told the Solomon Star from Noro that notice have been issued by the company for workers to return to resume duty.
The officer said Soltai needs fund by the end of this week to get on with production at Noro.
“And we have seen that funds are now been coming in to re-start productions which is good for the company, the workers and the nation,†he said.
Since the suspension of production, there are no canned products and workers sometimes received their salaries and wages late.
There was also frustration and fear the canned tuna may eventually run out.