Synlait's biggest shareholders to vote on $218m rescue package

Synlait's two biggest shareholders will be able to vote on a $218-million rescue package they are bankrolling at next week's special meeting.

Market regulator RegCo dismissed a complaint brought by former chief executive and board member John Penno aiming to prevent the big two shareholders, A2 Milk and Bright Dairy, from voting on the bail-out package.

In a statement, Synlait said the support of all shareholders remained essential to safeguard the future of Synlait, and all shareholders were encouraged to exercise their right to vote at the special meeting, schedule for 18 September.

Penno brought the action, calling the bail out package a sweetheart deal for Bright Dairy and a2 Milk.

The proposed package would give Synlait capital to paid down debt and refinance its bank facilities, which offered a viable future for the company.