Gunns Rejects Insolvency Scrutiny Claims
The Tasmanian timber company Gunns has rejected reports an insolvency firm has been inspecting its books, ABC News reported. Gunns says it has hired the firm KordaMentha to provide advice on the sale of some of it woodchip processing assets. Newspaper reports claim the insolvency specialists were appointed by lender ANZ to examine Gunns' finances. Gunns has revealed an $800 million devaluation of a range of assets because of a fall in global woodchip process, leaving its balance sheet in the red. Shadforth Financial Group analyst Matthew Torenius believes placing the company into administration would be a drawn out process its lenders would want to avoid. "We've seen from the administration of companies of Great Southern Plantations and Timbercorp these things can drag on for years and years," he said. "So I think the banking syndicate will really be unwilling to take it to the next step but if it really gets bad enough they may have no other choice." Read more.