anz to decline gunns funding, page-14

ANZ aren't that well known for their abilities in originating project finacings (they are much better at simply joining a syndicate). Actually thinking about it, ANZ's record in the natural resources sector financings would be enough for other banks to run for the hills (LAF, ARX, etc.)!

This isn't then bad news for GNS, with any luck (for shareholders and employees) they will have an established investment bank/adviser to organise the debt for them rather than relying on a commerical bank. Likely European, Scando and Asian banks that are familar with the sector might be interested to join.

I'm told that if the financing doesn't come through and mill doesn't go ahead the incentive is there for GNS to ramp up its tree cutting and rather than feeding their own mill they will ship at the maximum rate to the pulp mills in Asia. (i.e. they wouldn't send this wood to their competitors if they had a mill, but without a mill they might as well sell all they can as quickly as they can).