Gunns: A forlorn hope

When CEO Greg L’Estrange took the pruning shears to most of Gunns assets resulting in a $457 million loss before tax for the year ended 30th June 2011, he must have hoped that he’d cleaned the slate and there would be no further bad news.

Alas this is not the case, as trading continues to disappoint and the book values of assets needs even more downward revision.

Forestry Tasmania's future

Will there still be a place in the world for Forestry Tasmania FT as a GBE after reality bites?

FT has struggled with cash flow and profitability and now it’s selling some of its more commercial activities. All the calls for FT to be restructured may be unnecessary. The in-house Voluntary Liquidator Bob Gordon, like his counterpart at Gunns appears to be doing just that, as assets are sold in an attempt to survive.

But is FT better prepared to face the future? Given that we will become more dependent on plantations, has FT’s management deftly and skilfully positioned FT to meet the challenges?