AACL and Glencore extend talks on deal

Agricultural investment company AACL Holdings and international trading group Glencore Grain say they are still negotiating $7 million in funding support for AACL, after failing to meet self-imposed deadlines to complete the deal.

"AACL and Glencore are continuing to negotiate the terms of the definitive agreements, and Glencore is continuing its due diligence investigations in relation to the transactions," ASX-listed AACL said in a statement today.

"The parties remain committed to the transaction, and are now targeting execution of the definitive agreements by Friday, August 24, 2012."

On July 5, 2012 the loss-making AACL announced that it had entered into a non-binding and incomplete heads of agreement with Glencore, covering funding support of up to $7 million for AACL.

The heads of agreement also covered the proposed acquisition by Glencore of AACL subsidiary AACL Pty Ltd and the assets and certain liabilities of AACL Services Pty Ltd that provide management services to AACL's grain co-production (GCP) projects.

It was also proposed that AACL Pty Ltd or a related body corporate acquire all the outstanding co-production units in the 2010 and 2011 GCP projects.

AACL said in July that if the transactions in the heads of agreement were implemented, AACL would be left with a positive cash balance and no substantial liabilities.