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Company misses ASX deadline NICK CLARK | September 16, 2011 12.01am


TIMBER company Gunns Limited missed a self-imposed deadline yesterday to update the Australian Securities Exchange about implications of its $34.5 million forestry windfall.

Gunns managing director Greg L'Estrange said on Wednesday a market update providing "detail of the agreement and its implications for the company would be made on September 15".

However, by the time the market closed at 4pm yesterday the company had not provided the update and a spokesman said it would not come until today.

Gunns had been expected to advise the market about a resumption to trading of its shares which were suspended at 20.5c on August 4.

Since then Gunns has reported a $355 million annual loss and ongoing interest-bearing debt of $628 million despite major asset sales.

The company has impending financial commitments including the payment of entitlements to 118 staff to be laid off from the Deloraine, Smithton, Western Junction, Austins Ferry and Southwood sawmills and the Somerset veneer mill. Gunns also has a $10 million payment due to ANZ Bank on September 30.

Meanwhile Environment Protection Authority director Alex Schaap said he would not make a decision this week on the validity of Gunns' pulp mill permits.

"The director does not yet have all the advice he needs in order to make a determination," a spokeswoman said.

Under the Pulp Mill Assessment Act the permits would lapse in the absence of substantial commencement by August 31.

Mr Schaap received a submission from Gunns last Thursday in support of its case for substantial commencement.

Early this month Mr Schaap said he expected to call upon legal advice from the Solicitor-General in looking further into some issues.

"I do not expect to require further submissions from other parties but I may find cause to take expert advice on some matters," he said.

Gunns has undertaken earthworks at the site over the past fortnight and believes that $200 million spent on the project is substantial investment.

Forest industry sources believe Gunns is a customer of VicForests which on Wednesday announced a ballooning to $16.4 million in overdue accounts last financial year.