International slashed capital spending by more than US$800 million Thursday just months after a short seller said the farm commodities supplier was masking debt and on the verge of collapse.
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The company has clawed back much of its losses after Muddy Waters Research, a US-based short seller, had sent the stock plunging in November by warning that it was in danger of collapsing like US energy trader Enron.
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In a statement after releasing the findings of a strategy review, the firm said it was reducing capital expenditure for 2014 to 2016 by more than Sg$1 billion (US$800 million) to between Sg$1.2 billion and Sg$1.6 billion.
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A previous plan had earmarked between Sg$2.2 and Sg$3.6 billion for investments in the same period.
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"In addition, Olam will scale down operations in select sub-scale profit centres and countries and release working capital from these business that can be deployed in other parts of our business," the statement said.
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The company said it was planning to have positive cash flows by its 2014 fiscal year.