Gunns' creditors support pulp mill project

KordaMentha Pty. Ltd., the receiver for Gunns Ltd., indicated that creditors strongly support promoting the sale of the failed timber company’s AU$2.2-billion pulp mill project, reported The Sydney Morning Herald on 10 October.

The company’s remaining softwood sawmills in Tarpeena, South Australia, and in Bell Bay, Tasmania have been restarted ahead of their sale, and the sale of woodchips is being negotiated at four ports, it was revealed.

It is likely that shareholders of Gunns have lost all of their investment, according to a recent comment from Mark Korda of KordaMentha. This contradicts what former Gunns CEO Greg L’Estrange said on 24 September, when he felt certain of a good outcome for all stakeholders.

KordaMentha indicated that the pulp mill project has “significant shareholder support,” and the company plans to review the project’s economic viability this month before deciding whether or not to pursue. Source: Sydney Morning Herald

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