SYDNEY, Sept 25 Australian timber company Gunns
Ltd will appoint voluntary administrators on Tuesday
after failing to raise fresh equity or agree a reprieve with
Gunns has been on a trading halt since March as it tried to
raise A$400 million ($416.90 million) after New Zealand-born
billionaire Richard Chandler pulled out of a $302 million
Gunns said its lenders, led by Australia and New Zealand
Banking Group Ltd, would not lend it funds needed to
meet its operational and working capital requirements.
"As a result, the company is unable to continue trading and
the directors are in the process of appointing an
administrator," Gunns said in a statement.
The Tasmania-based company reported a A$903 million loss in
the year to June after writing down the value of its forestry
and pulp mill assets. The company listed total liabilities of
A$879 million and assets of A$903.5 million as at June 30.
Environmentalists had long opposed Gunn's proposed A$2.3
billion pulp mill project in Bell Bay, near Launceston.
($1 = 0.9595 Australian dollars)
(Reporting by Lincoln Feast; Editing by Michael Urquhart)