is this the news you speak...

is this the news you speak of?

http://www.moneymanagement.com.au/Article/Timbercorp-outlook-bleak-say-administrators/482519.aspx

Timbercorp administrators Korda Mentha have warned investors of the company’s agribusiness schemes that the outlook is bleak for many of the projects.

In a letter to growers/investors sent out at the weekend, Mark Korda said his company would clarify the position of many of the projects in the next few weeks.

“Our efforts have been against the background of virtually no cash at hand and poor economic conditions,” he said in the letter.

“Shortly we will begin sending investors/growers the initial results of our assessments of the viability of the various projects.”

Harvesting of the olive crop in South Australia has gone ahead after the courts agreed the proceeds of the crop could pay for the harvester’s expenses.

It is understood some timber schemes are being harvested on the same basis.

After harvesting costs, the investors/growers will receive a share of the proceeds.

Korda said similar agreements could be used to ensure some projects are kept going in the short term.

“At the moment, minimal operations at least are continuing on all projects to protect the value of the assets,” he said.

“But critical deadlines are approaching and the options for funding are extremely limited.

“In these circumstances, the administrators cannot be confident about the viability of a number of schemes.”

Korda said the biggest issue facing the administrators at present is the lack of cash and the erosion of cash flow, which will affect the outcome of a successful result for investors.

As a result, he has called on investors to continue to repay their loans with Timbercorp to maintain cash flow into the company.

Korda Mentha has also successfully delayed the second creditors meeting, which was to have occurred this week.

The courts have allowed a 30-day postponement to enable a clearer picture of the state of Timbercorp to be prepared.

The second meeting will allow investors the opportunity to vote on the future of the company, including whether to liquidate the failed business.