Great Southern offer still stands

Pulpwood Plantations remains only bidder

By Alice Uribe
Fri 20 Nov 2009

Despite the outcome of yesterday's vote, Pulpwood Plantations' plans to bid for the Great Southern forestry assets still stands.

Pulpwood Plantations' Great Southern rescue offer still stands regardless of whether the beleaguered agribusiness company and its responsible entity are wound up.

"Our hotline has been inundated with growers who are seriously concerned that they're about to lose their investment. In response to demand from a large number of financial advisory firms, including most of the major dealer groups, next week we will be providing adviser briefings in all capital cities," Pulpwood Plantations chairman Gordon Martin said.

PIS, Financial Planning and Life, Avenue Capital Management and Madison Financial Group have all contacted Pulpwood Plantations on behalf on their clients.

Martin said Pulpwood Plantations proposes to fund the forestry schemes through to completion and was at this time the only bidder for Great Southern's forestry assets.

"To wind up the schemes would take away their real value. Look at what happened with Timbercorp - they got nothing. The business is being destroyed the longer this goes on," Martin said.

Growers have until 10 December 2009 to accept Pulpwood Plantations' offer by either attending a meeting on that date or voting by proxy.
 
At a meeting of creditors held in Melbourne yesterday, investor growers voted to wind up most of the 35 companies within the group.

This comes after a the major banks behind the agribusiness company rejected an offer from US-based hedge fund manager Och-Ziff Capital Management that could have ensured the survival of the projects.

Great Southern went into administration on 16 May with $600 million in outstanding debts to major lenders such as the Commonwealth Bank of Australia and ANZ.

McGrathNicol was appointed as receiver shortly after.

Go to today's InvestorDaily news

More stories by this author