26 Feb 2013

Gunns Traded While Insolvent

From Yahoo7 here
An explosive report has questioned whether the Tasmanian timber company Gunns traded while insolvent before its collapse last year.
Administrator PPB Advisory was appointed last September when Gunns could not pay its debts.
It has now released a report to creditors saying the company may have had problems six months before the collapse, but further investigation is needed.
PPB reports that it has found three instances where funds from plantation growers or other companies may have been used to keep Gunns running.
PPB Advisory emphasises the conclusions are from preliminary investigations which have been limited by time and the amount of information in Gunns's books.
It says further investigation is needed to conclude whether they constitute a breach of directors' duties.
Former directors are being contacted for a response.
The administrators' report also says unsecured creditors are unlikely to recover their debts. Banks are also unlikely to see all of the $440 million owed to them by the failed company. The report was released to creditors on Monday afternoon. It says the downturn in the woodchip industry contributed to Gunns' collapse in September. PPB recommends Gunns' creditors vote to place the company into liquidation, which is estimated to cost about $2 million in fees. Gunns creditors will meet next week.

The Cover-Up Continues
That fact Gunns were trading while insolvent meant nothing to the corrupt Tasmanian government. It meant nothing to the Liberal opposition and even the Greens covered-up why tens of millions of taxpayers dollars were pumped-in to the insolvent company in August 2011 under the highly-compromised 'Tasmanian Forest Agreement'. Why did the taxpayer have to fund these idiots debt to Forestry Tasmania and buy-out their already relinquished native logging contracts? 


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