Ann: Company Update , page-12

Source: News Bites

Timbercorp Ltd says the sale process for its forestry assets is likely to be further delayed or cancelled altogether as it attempts to avoid selling substantially below book value. While it has received offers, the company says they are not satisfactory and there is a chance no sale will happen at all.

The foresty sale had been undertaken to providing funding and reduce debt.


On the matter of its debt position, Timbercorp has a syndicated $200 million loan facility which is fully drawn. The facility is repayable by final repayment in December 2010, with the first payment of $10 million due on May 1 - which includes an extension on April's payment.


Timbercorp also has bilateral facilities with financiers until 2011 including a limit of $49.6 million due in May, $45 million in September, $10 million in December, $89.3 million in March 2010, $25 million in June 2010 and $150 million in August, 2011.


The company has also renegotiated to pay a $10.5 million interest payment under all loan facilities on May 1 instead of April.

Negotiations on its debt position continue.


Timbercorp has released this information to update the market after it went into a trading halt on Tuesday April 14 over its asset sale and debt position.

Its subsidiary, Timbercorp Primary Infrastructure Fund, is also in a trading halt pending this announcement.


STOCK DASHBOARD: April 16, 2009

Timbercorp

Price at 11:00 am: 8.10c

Price change from previous trading day: -22.9%

Relative Strength (6 months percentile rank): 0.4

Market capitalisation: $28.5 million

Dividend Yield: 18.5%


Balance sheet:

Current Position 2008 ($ 000)

Cash Assets 32,635
Receivables 104,025
Inventory 6,093
Others 487,997
Total Current Assets 630,750
Accounts Payable 72,492
Debt Due 440,596
Others 171,092