JOHN HAWKINS
The collapse of Great Southern should result in a trifecta for it is my opinion that Gunns due to its involvement in MIS Scams are also close to trading whilst insolvent, for millions of acres of trees will now come on the market, thereby undermining the value of agricultural land, the base for their asset backing.
The ANZ Bank, their bankers, are reported to be owed hundreds of millions of dollars by Great Southern and Timbercorp the other runners in the trifecta, money I suggest, it will be far from easy to recoup.
The ANZ Banks Board and CEO will meet to discuss whether they should cut off credit to other Ponzi Scheme operators, such as their 700 million dollar debtor, Gunns Ltd, a company that has been working a ten day month in the wood chip business, due to lack of demand resulting in reduced cash flow.
As of the 1st July Gunns will have to make a decision whether or not to continue to capitalize its pulp mill expenditure or take it to the bottom line, this would remove their annual profit in its entirety. With the collapse of Great Southern we are now looking at the last straw with which to break our Tasmanian camels back.
