Gunns responds to 'misleading' radio interview claims by Forestry Tasmania chief related to AU$25M debt allegedly owned by Gunns

LAUNCESTON, Australia , August 17, 2011 (press release) – In a radio interview today the Managing Director of Forestry Tasmania referred to claims of debt owed by Gunns Limited to Forestry Tasmania of approximately $25 million. This claim comprises two areas of dispute, claims under contractual take or pay provisions and claims by Gunns against supplies made by Forestry Tasmania under specific arrangements in the 2010 financial year.

Forestry Tasmania has made claims under take or pay provisions of supply contracts for the 2010 and 2011 financial years.

These claims are disputed by Gunns in accordance with the contractual process. Any payment in relation to the claims under the relevant contracts will not be paid until the dispute resolution process is completed.

Gunns has assessed the claims and believes that any liability it has to them would be minimal. For this reason Gunns considers that the suggested indebtedness is misleading.

Further to these matters Gunns has notified Forestry Tasmania that Gunns reserves its right to make further claims in relation to the contracts.

* All content is copyrighted by Industry Intelligence, or the original respective author or source. You may not recirculate, redistrubte or publish the analysis and presentation included in the service without Industry Intelligence's prior written consent. Please review our terms of use.