Supreme Court to hold oral hearing on Synlait's Pokeno appeal

There will be an oral hearing ahead of the Supreme Court decision on Synlait's land appeal bid. Photo/Brett Walker Publicity.

The Supreme Court has advised there will be an oral hearing prior to a decision on whether it grants Synlait Milk's bid to appeal the reinstatement of land covenants on its Pokeno site.

A hearing date has yet to be agreed and Synlait's chief executive Leon Clement said the company remains in conversations with all parties. He also said construction at the site remains on track.

The land is being used for a second nutritional powder manufacturing site that is set to be commissioned in the current dairy season.

When Synlait purchased the land in February 2018, it was conditional on the seller, Stonehill Trustee, procuring the removal of the covenants which restrict the site's use to grazing, lifestyle farming or forestry.

A High Court decision in November had removed the covenants and then Synlait took the title of the land.

However, the owner of adjacent land, Ye Qing, won an appeal in the Court of Appeal in May which overturned the decision to remove the covenants.

Synlait filed an application for leave to the Supreme Court to have the decision overturned in June.

"Our plans for the Pokeno site haven't changed. This is just another step in the legal process. We continue to have conversations with all involved and are hopeful we can seek an outcome that works for everyone," said Clement.

The shares last traded at $9.25, up 2.8 per cent so far this year.