5 Mar 2014

The Breakup Of Gunns - March 5 Update

By Brett Cole and The Australian
Comment. They may as well auction large chunks of Tasmania on Wall Street NY rather than Melbourne Victoria. It proves how inept Tasmanian politicians will do anything they can to sell the island of Tasmania to foreigners.
Four of the seven final bidders of Gunns just want the bankrupt Tasmanian company’s timber and land.
Two of the final bidders want to buy the land, plantations and the pulp mill license. One bidder just wishes to purchase the pulp mill license.
Gunns assets include 175,680 gross hectares of freehold land incorporating 96,850 hectares of hardwood eucalyptus and 3,780 hectares of softwood pinus radiata.
A license to build a pulp mill on a 650-hectare site with access to a seaport is included in the Gunns sale. A forestry service business that includes woodchip mills and a nursery are also for sale.
Final bids are due March 31 and the winning bid is the bidder willing to pay the highest price for the Gunns asset or assets.
Sovereign wealth funds, US timber investment management organisations and pension funds are all anxious to secure parts of Gunns. The 139-year old company is seen as a strategically important fibre asset in a politically stable nation on the doorstep of Asia.
As much as 70 per cent of the proceeds of the sale will go to hedge fund Anchorage Capital Group, which bought Gunns debt for between 45 cents and 55 cents in the dollar from a group of banks, including ANZ.
Gunns’ lenders, or secured creditors, were owed $445.7 million, according to PPB Advisory in February 2013.
Gunns receiver KordaMentha and Moelis are managing the sale of the company.

No comments: