The Tasmanian timber company, Forest Enterprises Australia, has gone into voluntary administration.
The company has a debt of $216 million.
The Chairman, Will Edwards, says the move to administration is extremely disappointing.
He says revenue over the past 18 months had been adversely impacted by the global financial crisis.
The company was exploring the possibility of taking on an overseas or domestic partner and selling off some assets.
Premier Bartlett:
Forest Enterprises Australia Limited (FEA)
The Premier today expressed disappointment at the announcement by Forest Enterprises Australia Limited (FEA) to the Australian Stock Exchange that a voluntary administrator has been appointed to manage its affairs.
“The Government will work closely with the voluntary administrator to help employees affected by this decision,” Mr Bartlett said.
“The Government will be in contact with the administrators as soon as possible to obtain a briefing on the outlook for the business.”
Mr Bartlett said that FEA had approached the Government for financial assistance but the Tasmanian Development Board recommended against supporting the assistance package requested.
“The Board took into account a number of factors. These included the substantial risk to taxpayer funds and uncertainties around the managed investment scheme industry.”
