DrW, the forest deal hasn't fallen through - yet. With the surrender of their native forest sawlog quota, Gunns is out of it anyway, whichever way it goes.
Gunns are paying local bills from what I have heard, but its the squeaky wheel that gets oiled. Otherwise, it's 120+ days. A lawyer's letter threatening court action is a pretty loud squeak. Have you tried that?
Smart farmers leasing land to GNS trigger the default/termination clauses in their contracts (usually issue of a default letter one day after payment fails to arrive) and also get paid when that has run its course/timeline. If GNS don't pay then, they lose the plantation to the landowner!
Gunns have, under both Gay and le Estrange, been appalling bad at paying bills. It's been a despicable and deliberate way of using other' capital to partly fund their working capital. The victims were frequently captive small owner-operated businesses that suffered.
Gunns thought it was being smart business people. Everyone else thought it was bereft of corporate morality. I'm told that apart from the exec involved in cash management, the rest of GNS staff hate it with a vengeance.
GNS Price at posting:
20.5¢ Sentiment: Hold Disclosure: Held
