There are fears forest contractors in Tasmania and interstate face potential bankruptcy because of new legal action being taken by Gunns Limited liquidators.
Gunns went into voluntary administration in 2012, after a reporting a loss of close to $1 billion for the previous financial year.
It owed millions of dollars to hundreds of people, businesses and government departments.
The Forest Contractors Association said the Gunns liquidators, PPB Advisory, were taking legal action to recoup millions of dollars for creditors.
There have been several hearings in the Supreme Court this month involving liquidators, including directions hearings and public examinations.
The Association said harvesting and haulage contractors were among those PPB was taking legal action against.
The Association’s Ian Reid said it could be “the final nail in the coffin” for contractors across Australia.
“I have been told it will likely bankrupt some contractors if they are required to repay money,” he said.
• mr t in Comments: #2, quite correct. The liquidators are doing their job on behalf of all creditors be they preferred, secured or unsecured. In this examination they look at the solvency of the company and this could extend to the knowledge of the directors they were trading whilst insolvent (tut, tut!) The Forest Contractors Association can whinge all it likes but if they received payments as unsecured creditors during a period of insolvent trading then it’s time to pay the piper. The preferred creditors, like the banks, also know the insolvency laws. A few of the forestry contractors should be able to tap into their Exit Packages…no?
