AWB chief executive Gordon Davis is confident the agribusiness group will be able to roll over $1.2 billion in debt by May and says the sale of the Landmark loan book is one possibility as it looks to ease pressure on its balance sheet.
AWB said last month that it expected its first-half pre-tax profit to slip 55-65pc on the $64.6 million posted in 2008 due to the drought.
As part of a cost-reduction program in Landmark, about 35 jobs have been culled out of 2200, and a hiring freeze has been set in place.
Mr Gordon said AWB was considering selling the loan book and was not looking to raise capital.
"The quality of the loan book has continued to be very resilient," Mr Davis told AFR.
"The loans valuations ratios are less than 40pc. The rural property values have been sustained because of decent commodity prices, which is ultimately the security.
"As long we can maintain the quality of the book ... then on funding side we will continue to get support."
AWB needs to refinance $1.2 billion with Australian and New Zealand Banking Group and Rabobank before May.
The AWB share price yesterday skyrocketed nearly 30pc, ending up 26.5¢ at $1.17, its highest close in a month. AWB has gained 54 per cent in the past three days.
Email a friend