The Right To Information department at Forestry Tasmania is usually busy responding to Kim Booth’s requests for information ...
But the latest response to Elise Archer, Liberal Member for Denison at ...
is of particular interest.
A briefing note (below) from Bob Gordon dated 29th July 2011 following an FT board meeting two days earlier claimed Gunns financial problems were overwhelming and likely to result in the appointment of a Receiver by the banks being the secured creditors.
Talk about the kettle being called black by a particularly sooty pot. FT at this stage had just experienced another year of negative operating cash flows. The only thing stopping it from following Gunns into Receivership was the Letter of Comfort.
Given any payment from GNS was unlikely, it was incumbent on the Government to find some money to help FT survive so they arranged to pinch $11.5 million from IGA funds.
But how do get money into FT from the IGA? Even though Gunns terminated Contracts 917 and 918 in writing on 18th April as further disclosed in the briefing note the only way was to resurrect the residual rights to provide for payment to Gunns, and divert some to FT ostensibly in settlement of receivables due. Without a transfusion FT was virtually out for the count.
What a rort.
It is likely that Gunns did not include amounts allegedly owing to FT as payables in its financials. To do so would have meant the absurdly concocted measure of underlying profit reported to the market was wrong.
Wouldn’t want ASIC knocking on the door again, would we?
First published: 2011-11-25 06:33 AM