Belief South Island dairy processor Synlait has been handed a life line, but not a life saver

Shareholders voted 99.6 percent in favour of taking out a 130-million dollar loan, meaning it can meet its debt payment to banks, due on Monday.

It comes after the company plunged into a 96.2 million-dollar first half loss.

Synlait supplier Cameron Henderson says Covid-19 and China's lowering birth rate contributed.

He says the impact on infant formula - as the company's highest valued export - was likely one of several straws breaking the camels back.