Forestry Tasmania expects to reveal a significant loss for 2011-2012 fiscal year, but managing director says state-owned company collected most of what it was owed by Gunns and is in talks to swap some plantations

LOS ANGELES , October 22, 2012 () –

Forestry Tasmania is expected to reveal a significant loss for its previous financial year because of what its chief calls a particularly tough year, reported the Australian Broadcasting Corp. (ABC) on Oct. 22.

The company’s report for its 2011-2012 fiscal year is likely to be released this week and will reflect such circumstances as difficulties at the woodchip mill in Triabunna, Tasmania, and Gunns Ltd.’s receivership and administration, said Managing Director Bob Gordon.

Forest Tasmania is in talks with the receivers of Gunns about possibly swapping some plantations between the two companies, Gordon said, adding that Forest Tasmania does not have the money to buy the assets, the ABC reported.

The company was able to collect on most of what Gunns owed it, including debts related to a sawmill in Southwood Huon, Tasmania. In that transaction, Del Vista purchased the mill and, in return, Gunns paid much of a debt that was in dispute, said Gordon.

Particularly hard hit in the past year has been Forest Tasmania’s woodchip mill in Triabunna, Tasmania, due to a “blockade” to moving product, said Gordon, noting that the mill might have to close down permanently, reported the ABC.

The primary source of this article is the Australian Broadcasting Corp. (ABC), Sydney, Australia, on Oct. 22, 2012.

 

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