Gunns: it's liquidation

ABOUT 70 Gunns creditors left a meeting in Launceston yesterday that decided to liquidate the failed timber company with the knowledge that many of them would not see the money owed to them.

The liquidator appointed at yesterday's two-hour meeting intends to report back  within three months on concerns that the company may have traded while insolvent.

Those concerns have been rejected by former Gunns directors.

The company owes unsecured creditors $134.8 million and owes secured lenders $635.9 million.

A further $2.2 billion has been identified  in intercompany loans, making the company's total debt $3 billion.

Administrator Daniel Bryant, of  PPB Advisory, said that while all employee entitlements were expected to be fulfilled, not all creditors would have their debts repaid once all company assets were sold.

``The present view is the assets are  unlikely to pay the security charge holders' debt in full, and accordingly  there is unlikely to be return for the unsecured creditors,'' Mr Bryant said.

PPB Advisory will now act as the company's liquidator after the unanimous vote by creditors yesterday to liquidate.

Gunns' creditors meeting yesterday

Gunns' creditors meeting yesterday


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