This means the company will finalise a payment agreement with its creditors soon.

A week ago, the Government had warned that the company could be wound up if it did not move speedily to restructure its operations.

John Thompson, chairman of the Citrus Growers Limited, said talks were far advanced to comply with the Government's request.

He said farmers who were still owed payments for last season's crop would also be paid.

Agriculture Minister, Dr Christopher Tufton, has welcomed the decision of the board to restructure its operations.

Dr Tufton said the decision taken by the board would speed up efforts to provide the company with bridge financing.

"This means we can now re-package the company and invite equity participation that will allow the company to regain its viability and equity participation in a way that secures the interest of the farmers," Tufton told The Gleaner.

He said former chairman of the Financial Services Commission, Dennis Boothe will act as interim manager of the company during the restructuring excercise.

Boothe will work with the board of the citrus company to tighten its organisation and improve its efficiency to help it attract private investment.

"The entity will not be able to sustain itself if there isn't an injection of capital-capital which the government cannot afford beyond what it has already done," said Tufton.

Liquidity problems

Jamaica Citrus Growers has been in poor financial health since liquidity problems commenced in 2006.

The Ministry of Agriculture intervened in the interest of the island's citrus farmers earlier this year after financial statements revealed the company's net assets worsened to nearly minus $175 billion last year from a little over minus $86 billion in 2007.

It outlined a proposal to the company to finance this year's crop, on the condition that the company would undergo major restructuring, which should include engaging its equity partner, as well as the current board and management giving up some of the control they currently have.

The restructuring exercise would involve a major capital injection of close to $500 million which should be provided by private partners.