Gunns Limited confirms that the terms for an extension to 31 December 2012 of its syndicated debt facility (currently $340m) and primary working capital facilities, have been agreed with its primary banking syndicate etc etc ...
• GUNNS DEBT EXTENSION DELAYS THE INEVITABLE
As L’Estrange Continues To Act As Unofficial Liquidator
Kim Booth MP
Greens Forestry Spokesperson
Tuesday, 31 January 2012
The Tasmanian Greens today said the decision by banks to postpone Gunns Limited’s debt repayment deadline has extended the pall of uncertainty and dread for residents and businesses of the Tamar Valley.
Greens Forestry spokesperson and Member for Bass, Kim Booth MP, said the decision by ANZ and its venture partners has only delayed the inevitable day when the project is declared dead.
“This decision by lending institutions has extended anguish and uncertainty that has resulted from a corrupt approval process which failed to consider the health and safety of Tamar Valley residents,” Mr Booth said.
“These lenders only have themselves to blame for backing a loser, and they shouldn’t be surprised when customers decide to take their business to financial institutions that are meeting their social and environmental responsibilities.”
“It’s time for the banks to cut their losses and finally put an end to this project, which has delivered nothing to the people of Tasmania but corruption and despair, and nothing at all to ANZ’s customers.”
“This move to continue to back a loser probably has more to do with making Greg L’Estrange into an unofficial liquidator for the banks who are desperate to claw back loans before the inevitable winding up of the company.”
“If the banks can put six months between a payment and administration they can then resist the call for the money to be paid back.”
“This is a dangerous time for shareholders and creditors of Gunns and the right time to cut their losses and get out before the whole edifice crumbles,” Mr Booth said.
“The ANZ will be remembered for not only extending the misery for Tamar Valley residents but also internationally for supporting corrupt approval processes in defiance of the equator principles which the bank purports to subscribe to,” Mr Booth said.