The examiner newspaper 4 oct.
"GUNNS went into administration because it could not progress the proposed pulp mill at Bell Bay, former managing director Greg L'Estrange told a Launceston court this morning.
See your ad here
Giving evidence at a preliminary proceedings hearing for the insider trading charges lodged against his former boss John Gay, Mr L'Estrange agreed with a proposition from Mr Gay's counsel, Phillip Priest QC, that Gunns would still be operating and making money for shareholders if it had succeeded in building the pulp mill.
``I wouldn't have put the last three years of my life in if I didn't believe that,'' Mr L'Estrange said.
Mr L'Estrange said the board of the company thought it was ``probable'' that a joint venture partner would be secured for the mill up until its meeting in June of this year, when it concluded the mill was ``unlikely to happen.''
The Tasmanian timber company went into voluntary administration last week.
Mr L'Estrange said his employment with the company ceased last Wednesday and he gave his current job as ``consultant''.
Mr Priest questioned Mr L'Estrange on changes he had made to a statutory declaration to the Australian Securities and Investment Commission last year, which were drafted by Gunns lawyers and filed with the prosecution last week.
Mr L'Estrange admitted that his original statutory declaration contained a number of ``errors'' about the company's earnings and profits before tax.
Mr L'Estrange also said:
- That Gunns used a ``flawed methodology'' in calculations in its unaudited performance figures.
- That navigating Gunns policies was a ``nightmare''.
- That the culture of Gunns did not support transparency of or compliance with policies.
- That he had bought shares in violation of the company's share trading policy when chief executive officer, because he was not aware of it.
Mr L'Estrange is the second witness to give evidence at the preliminary hearing, which began with company secretary Wayne Chapman in the stand yesterday.
He was originally scheduled to give evidence tomorrow.
See your ad here
Mr Gay will not be present until the end of the hearing.
The 68-year-old has pleaded not guilty to two counts of insider trading for allegedly making $3 million from the sale of 3.4 million shares in December 2009, about two weeks after receiving a monthly management report that showed the company's profits and earnings had dropped.
The hearing before Magistrate Reg Marron at the Launceston Magistrates Court continues today."
CoolRoom - ok ok another post ...never say never!
Before posting - remember its a current case before the courts!
Add to My Watchlist
What is My Watchlist?