CALGARY -- Grain handling giant Viterra Inc. (TSX:VT) says discussions with lenders to its Australian acquisition ABB Grain Ltd. have led to a waiver in respect to loan covenants ABB had previously breached.
Calgary-based Viterra, which has about 3,200 employees, said Tuesday it has been working to restructure ABB's operations. Viterra reports financial results on Jan. 21, which its said will include about five weeks of ABB results and the consolidation of ABB's debt.
"We have been working hard to implement changes in Australian operations to strengthen business processes and accountability for bottom-line results," chief financial officer Rex McLennan said in a statement.
"We are confident that our Australian operations will achieve significant earnings recov-ery in 2010 given the larger than average crop in the region, leadership changes in key posi-tions, and a more disciplined, sharper focus on business execution to achieve its financial performance targets."
ABB employs 1,100 across its divisions throughout Australia and its international opera-tions.
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Viterra said it has been "actively integrating and rebranding" ABB since it was acquired for $1.4 billion in September. Among the changes, Viterra said it has restructured ABB's grain operation
"to align storage and handling, transportation, logistics and grain marketing into a single pipeline model that focuses on shared objectives."
It has also put organizational changes into effect in the agri-products segment and is de-veloping a new farm customer relationship program. The company expects to name a new leader for its Australia and New Zealand businesses in the next few weeks.
