http://mps.tas.greens.org.au/2012/10/anz-bank-urged-to-forgo-secu...

http://mps.tas.greens.org.au/2012/10/anz-bank-urged-to-forgo-secure-creditor-status-for-gunns-ltd/


ANZ BANK URGED TO FORGO SECURE CREDITOR STATUS FOR GUNNS LTD

Kim Booth MP
Greens Forestry Spokesperson

The Tasmanian Greens have written to the ANZ Banking Group urging the company to forgo its status as a secured creditor of Gunns Ltd, to ensure that local businesses that were loaned money to fulfil contracts with Gunns don’t also end up in liquidation.

Greens Forestry spokesperson, Kim Booth MP said that the letter was to inform the bank of a Motion recently passed by the Tasmanian House of Assembly which asked banks “to consider the request to forgo their status as secure creditors of Gunns Limited to ensure that local businesses, farmers and contractors can receive their moneys owed.”

Mr Booth said ANZ had a particular responsibility to local businesses, because it continued to fund Gunns’ operations for the last two years, when it was clear that the company was on the path to insolvency.

“While it was propping up the corpse of Gunns, the ANZ Bank was also loaning money to businesses that had contracts with Gunns which they should have known were never going to be met,” Mr Booth said.

“This year the bank announced a statutory profit after tax of $2.92 billion for the half year, so it can clearly afford to forgo the $50 million that is owed to unsecured creditors.”

“Small businesses have not had access to Gunns’ balance sheets, as the banks have, and they were given the false impression that that Gunns was financially viable and would be able to pay its debts.”

“If the ANZ Bank wants to preserve its reputation in Tasmania, it will ensure that small businesses are paid out first and the Tasmanian economy does not suffer from a domino effect of bad debt.”

“It’s now time for the ANZ Bank to look after the community that has looked after it for so long,” Mr Booth said.

Oct31_Letter from Kim Booth MP to ANZ Bank_ATTACH

October 31, 2012