Thursday, 23 January 2014

Mill shortfall

The plantation feedstock shortfall for the proposed pulp mill is still not widely understood.

Just consider the following, first a quote from Martin Ferguson’s recent Review of the Tasmanian Private Hardwood Plantation Estate and second an extract from the last detailed presentation given by Gunns.

Friday, 17 January 2014

Desperate times

When Gunns first entered voluntary administration 15 months ago it seemed as if the secured creditors (the banks) would get most of what they were owed. It didn’t much matter if the pulp mill permit was worthless; there was enough value in Gunns’ other assets to ensure the banks were repaid.

Creditors and shareholders wouldn’t get anything. KordaMentha the receivers in control of most of Gunns’s assets acted for the banks and didn’t care about others: growers, creditors, the people of Tasmania. Their mission was to ensure there was enough in the pool to cover their fees and to pay the banks.

But with every passing day throughout the insolvency administration period the banks’ shortfall has been increasing.