The longer term fate of transport work contracted by timber firm Gunns is no clearer, despite the appointment of PPB Advisory as administrators and KordaMentha as receivers and managers. But KordaMentha Partner Mark Korda, who now controls the group with fellow Parner Bryan Webster, has revealed a three-point plan for the short term.
By Rob McKay | September 26, 2012
The longer term fate of transport work contracted by timber firm Gunns is no clearer, despite the appointment of PPB Advisory as administrators and KordaMentha as receivers and managers.
But KordaMentha Partner Mark Korda, who now controls the group with fellow Parner Bryan Webster, has revealed a three-point plan for the short term:
- Continue softwood sawmill and distribution operations on a ‘business as usual’ basis while a sale process is undertaken
- Undertake a review of harvesting operations, plantation maintenance and lease obligations to determine the appropriate strategy in terms of restructuring or realising the group’s plantation and associated assets.
- Explore all other opportunities to maximise value for the benefit of stakeholders including a strategic review of the planned pulp mill.
A spokesman says transport contracts would be part of the process of asset realisation.
Meanwhile, PPB Advisory administrators Ian Carson, Daniel Bryant and Craig Crosbie will examine the options.
“Our priority at this time is to work closely with creditors, growers and other stakeholders to determine the best outcome,” Bryant says.
“We are now undertaking an urgent review of the business and will update all parties on our progress and next steps.”
Tasmanian Premier Lara Giddings would not speculate on the future of the project on which the future of Gunns had rested and which had promised a great deal of trucking work in the state, both during construction and afterwards – the Bell Bay pulp mill.
“It is still too early to speculate on what this announcement may mean for the pulp mill project, which has full approvals in place and is awaiting financial close,” Giddings says.
Both PPB Advisory and KordaMentha have had recent experience in dealing with agribusiness and distribution failures.
PPB Advisory handed Hi-Fert and Burrup Fertilisers 18 months ago and Wilmott Forests Group four months before that.
KordaMentha was involved in the Timbercorp failure in 2009 and FreightLink sale in 2010 but more recently was also involved in Willmott and handled the Crafar dairy farms group.