LOSSES tied to the collapse of Gunns Ltd total more than $2 billion, the state government has confirmed. But Resources Minister Paul Harriss said liquidators for the failed timber company had promised to go easy on local businesses as they work to collect the money owed to creditors. Mr Harriss received a briefing from liquidators PPB Advisory on Tuesday, amid fears that looming legal action could bankrupt Tasmanian contractors already hurt when Gunns went into voluntary administration in 2012. He said PPB Advisory explained they had obligations to ASIC and the courts to ensure creditors were treated fairly. But Mr Harriss said he also sought and received assurances from the liquidators. ‘‘They will have regard to the financial circumstances of Tasmanian businesses including contractors and the need to avoid further insolvencies,’’ he said. The Australian Forestry Contractors Association said a number of haulage and harvesting contractors subject to the legal action had already lost tens of millions in unpaid invoices when Gunns collapsed. Association chairman Ian Reid said the contractors had taken a hit as unsecured creditors, and could soon be dealt a knock-out blow. Mr Harriss echoed earlier calls from PPB Advisory, urging all affected parties to obtain independent legal advice. ‘‘It is very important that the green shoots in the forestry industry are not derailed by uncertainty about this issue, and the government will continue to closely monitor the situation,’’ he said. Mr Harriss said he was also assured the process would not involve the sale of Gunns’ plantation assets to New Forests.
LOSSES tied to the collapse of Gunns Ltd total more than $2 billion, the state government has confirmed.
But Resources Minister Paul Harriss said liquidators for the failed timber company had promised to go easy on local businesses as they work to collect the money owed to creditors.
Mr Harriss received a briefing from liquidators PPB Advisory on Tuesday, amid fears that looming legal action could bankrupt Tasmanian contractors already hurt when Gunns went into voluntary administration in 2012.
He said PPB Advisory explained they had obligations to ASIC and the courts to ensure creditors were treated fairly.
But Mr Harriss said he also sought and received assurances from the liquidators.
‘‘They will have regard to the financial circumstances of Tasmanian businesses including contractors and the need to avoid further insolvencies,’’ he said.
The Australian Forestry Contractors Association said a number of haulage and harvesting contractors subject to the legal action had already lost tens of millions in unpaid invoices when Gunns collapsed.
Association chairman Ian Reid said the contractors had taken a hit as unsecured creditors, and could soon be dealt a knock-out blow.
Mr Harriss echoed earlier calls from PPB Advisory, urging all affected parties to obtain independent legal advice.
‘‘It is very important that the green shoots in the forestry industry are not derailed by uncertainty about this issue, and the government will continue to closely monitor the situation,’’ he said.
Mr Harriss said he was also assured the process would not involve the sale of Gunns’ plantation assets to New Forests.
