Shareholders were screwed

See attached harvest report.

The 2018 harvest is expected to produce heartwood of 13.4 kg/tree or double the 6.7kg / tree from the 2017 harvest. Have a look at the graph on the second page. The 2018 harvest fits with the trend from 2014. It demonstrates as TFC gained knowledge and improved its forestry management practices the heartwood yield improved.

The only year not fitting this trend is 2017. There are two explanations:

1) The forestry management team stuffed up when they planted the 2002 plantations and did not manage them effectively during the 15 year life; and this poor management did not occur in the other years; or
2) Something happened at the harvest time to give the impression previous QIN management were overstating the value of the plantations and that QIN was worth substantially less so that the secured creditors had to rescue the company.

As I have said previously, if a rational investor considered their was a risk with QIN they would have invited the existing shareholders to participate in the recapitalisation to lessen the risk. By not inviting the existing shareholders to participate in the capital raising demonstrates the secured creditors are extremely confident of getting their money back.