Outcome in the balance for Timbercorp agribusiness projects
The administrator appointed to failed agribusiness manager Timbercorp will not rule out another business buying out every agribusiness project run by the group, KordaMentha spokesman Mike Smith told Money Management.
But there is also the possibility each project could be sold off separately. Smith said because the Timbercorp projects were so different in terms of geography and climate, there would be different outcomes for different parts of the business and KordaMentha is developing a strategy for each agribusiness project.
Timbercorp went into voluntary administration yesterday after failing to resolve its debt issues. The agribusiness has appointed KordaMentha to implement a three-point plan, which includes suspending its forestry and horticulture operations while it determines its funding options, developing a strategy for each agribusiness project and attending to statutory reporting, investigation and liaison with its creditors and shareholders.
Timbercorp has $568 million in debt, net debt of $903.1 million and net assets of $595 million.
The first creditors meeting to discuss the situation will be held within eight business days.
Timbercorp warned the market in April that it might not be able to repay its debt obligations. The agribusiness was trying to activate an asset sales program, but received offers that were substantially below book value and incomplete in nature.
The group had until May 1 to come up with an alternative refunding or restructuring program.
Timbercorp did not return calls before deadline.
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