The company manages 10,000ha of timber plantation in Northern Tasmania and employs eight staff and about 80 contractors.

Ferrier Hodgson was appointed as administrator of the company on Saturday.

In a statement to the Australian Stock Exchange yesterday, administrator Martin Jones said the administrators were working with the board and management to look at options for the restructure of the company and its financial position.

Tasmanian Forest Contractors Association executive officer Ferdie Kroon said the news was "another kick in the guts" for contractors, who have already lost work hours as a result of mill shutdowns associated with the global financial crisis.

"There is a potential impact on business losses and job losses - those that work with Great Southern in terms of managing and establishing their plantations," Mr Kroon said.

Gunns Plantations managing director Ian Blanden said there would be no negative impact on Gunns as a result of Great Southern's situation, which follows the administration of fellow MIS company Timbercorp less than a month ago.

Gunns manages 100,000ha of plantation on behalf of MIS investors, out of a total of more than 200,000ha in the Gunns estate.

"Our model is significantly different from the two organisations in difficulty at the moment," Mr Blanden said.

"We are a forest products company with a fairly minor MIS arm and we are not solely reliant on MIS for revenue."

Mr Blanden said he could not comment on whether Gunns would look to buy any of the Great Southern plantations.

A creditors meeting will be held on May 27.

Finance Minister Lindsay Tanner said he was yet to be briefed on the flow-on effects for local jobs connected to Great Southern investments.

But he said local employment co-ordinators would be made available if there were great numbers of job losses in the region.

The administrators said a moratorium, with certain exceptions, would be imposed upon creditors of the company, and on people who own property being used by Great Southern "in order to provide the company with breathing space".