PPCS warned yesterday that a strong currency meant it was likely to have breached its banking interest ratio, amid soaring yields on its bonds reflecting investor concerns.
The meat company said it had not finished preparing its annual accounts to May 31, but ongoing New Zealand dollar strengthsince a profit warning in March was exacerbating difficult conditions.
If necessary, PPCS would request waivers from its banks when it finalises its accounts.
"As the New Zealand dollar has appreciated 9 per cent against the US dollar since 4 March, we assume that investors in PPCS bonds are anticipating the impact of that increase against our profitability," the company said.
A report yesterday that soaring PPCS bond yields suggested investors were deeply concerned prompted the disclosure.
The stock exchange also issued a "please explain" to the company.
PPCS previously breached some of its banking covenants during last year's half-year result.
PPCS said yesterday that it did not expect to satisfy interest coverage ratios on its bank facilities and bonds until August 31, unless the New Zealand dollar fell and conditions improved.
