Agribusiness Elders Limited disclosed on Tuesday it failed to finalize its bank finance from the Rural Bank to lure in potential investors in their Forestry 2010 managed investment scheme project.

However, Elders Forestry said it will continue to provide limited internally-funded finance to approved investors.

“Finalization of a firm detailed agreement with the Rural Bank has not been possible,” the company said.

“As a result, Elders Forestry will not be in a position to introduce bank finance to investors in its 2010 product offering.”

In the past, Elders Forestry has provided finance for growers with $5 million to $15 million.

Following the demand, the company said it will provide finance up to $15 million in total on its planned 2010 project to investors who meet the strict credit credential.

Earning forecasts for Elders will rely on the level of the MIS sales, which will be announced in July 1.

The forecast for the full-year forestry underlying their “earnings before interest and tax” (EBIT) may surge up between $3.1 million if the expected MIS sales of $15 million succeeds.

A $2 million loss should be expected if MIS sales reached a failure.

“While a nil result is not expected, market indications are now that the MIS result may finish at the lower end of the sales range,” the company said.

Profit expectations on MIS sales will be finalized after June 30.

Shares for Elders Ltd. were four cents lower at 91.5 cents, by 4.2 per cent on Tuesday.