Forest Enterprises Australia chief executive Andrew White today said a change in insurance billing for woodlot growers was not a bid to generate cash revenue.
FEA will this month make the change to invoicing woodlot growers in advance, rather than carrying the insurance costs in arrears.
Mr White said the funds would be held in a custodian as it would be inappropriate to hold others people's cash in the company's trading accounts.
The Launceston business is attempting to refinance $216 million worth of debt and restructure its operations.
A suspension of FEA stock on the Australian Securities Exchange expires on Monday but another extension could be sought.
Mr White said the company was actively working through a complex process and discussions with financiers were continuing.
"The ASX suspension is temporary and it is up to the company to relist once we request it of the ASX following the release of the half-year results,'' Mr White said.
"There is no banking conditions in relation to this, and in all respects it is as business as usual with all our activities.''
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