Timbercorp goes into administration
Timbercorp has gone into voluntary administration after failing to resolve its debt issues. The agribusiness has appointed KordaMentha to implement a three-point plan, including suspending its forestry and horticulture operations while it determines its funding options, develops a strategy for each of its agribusiness projects and attends to statutory reporting, investigation and liaison with its creditors and shareholders.
Timbercorp has $568 million in debt, net debt of $903.1 million and net assets of $595 million.
Mark Korda said the company was hurt by declining global asset values, tightening credit, the economic downturn and drought.
The first creditor’s meeting to discuss the situation will be held within eight business days.
Timbercorp warned the market last week that it may not be able to repay its debt obligations. The agribusiness was trying to activate an asset sales program, but received offers that were substantially below book value and incomplete in nature.
The group had until May 1 to come up with an alternative refunding or restructuring program.
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