http://www.abc.net.au/news/stories/2010/04/24/2881931.htm?section...

http://www.abc.net.au/news/stories/2010/04/24/2881931.htm?section=business

Greens dismiss Gunns' restructure

Posted Sat Apr 24, 2010 12:46pm AEST

The Australian Greens say the restructure of Tasmanian timber company Gunns is a doomed last ditch effort to attract foreign investment in the proposed pulp mill.

John Gay's announced he will step down as chairman of the financially struggling company to head up a new firm, Southern Star.

That firm will manage the $2.5 billion Tamar Valley pulp mill proposal, with Gunns remaining the majority partner.

Greens Senator for Tasmania, Christine Milne, says Mr Gay is simply "buying time."

"This restructure is to just put a bit of gloss on it to say look we've restructured the company, we've put out there expressions of interest, we're now waiting to see what comes back,: she said.

"But the same problems remain, John Gay is still running Southern Star you still have the same sort of governance as occurred at Gunns," Senator Milne said.