Timbercorp creditors hear the bad newsTuesday, 05/05/2009The...

Timbercorp creditors hear the bad news

Tuesday, 05/05/2009

The first meeting for people who are owed money by failed managed investment company Timbercorp is underway in Melbourne.

The creditors have voted in a committee to represent their interests, as company administrators continue to go through Timbercorp's books.

Administrators say Timbercorp's forestry projects appear to be sself-funding, and harvesting will be resumed.

However, the horticulture projects are more problematic, and they'll continue to look into the viability of individual projects.

Michael Smith, from the administrator, says it could take years to work out how much investors are owed.

"It'll be extremely difficult to calculate and it will be a matter for a lot of discussion and expert reports and arguments over the coming months and perhaps years,' he says.

Administrators say Timbercorp has 153,000 megalitres of water entitlements, and 120,000 hectares of land, as assets.

Creditors will decide the future of the company at the next meeting, thought to be in a month or so.


nj