a sad day, page-66

Let's see how it will pans out

Timbercorp faces chop
Leslie White

April 16, 2009
MANAGED investment scheme giant Timbercorp appears to be on the verge of collapse as an ASX statement reveals the company is in huge financial trouble.

As many experts predicted, the company's sell-off of assets in an effort to reduce its $600 million-plus debt has gone disastrously.

Offers on its assets have been "substantially below book value" and "incomplete and conditional in nature", according to today's ASX announcement.

"Based on the offers received to date, it is unlikely that the company will be able to sell the forestry assets within the timeframe required to satisfy the objectives of the sale program. Indeed, there can be no assurance that a sale will be achieved," the statement says.

The company is attempting to renegotiate with financiers.

"Unless the company is able to reach agreement with its financiers to restructure the existing debt facilities, or an alternative funding or restructure plan is implemented before 1 May 2009, there is significant uncertainty regarding the ability of the company to continue as a going concern," the statement says.

Sustainable Agricultural Communities Australia chairman Robert Belcher said he had continually asked politicians for examples where government assisting an industry over and above normal market forced had "worked out to the benefit of the nation".

"I'm still waiting," Mr Belcher said.

"This was so predictable, and how much damage have we done to people, resources, the nation's wealth and rural communities? I'm bleeding for the farmers - they've been shot in the back.

"The politicians who argued for MIS ought to hang their heads in shame."

NJ