MELBOURNE, AUSTRALIA - Gunns Timber Products is seeking "expressions of interest" in an asset sale. The large Australian forest products company filed for bankruptcy after a sale to a Chinese investor fell through last month and its lenders refused to extend more than $500 million in loans.
On the market are two saw mills and a national sales and distribution network in Australia. In the latest fiscal year, Gunn Timber Products processed 750,000 cubic meters of cut logs, but its sales have dropped precipitously. In 2006 Gunn Timber generated Australian $600 million; it lost $350 million in 2011. It has attracted hundreds millions through recent investment offerings,
The second largest manufacturer of Australian-grown plantation pine produces structural building materials including framing, a termite resistant framing and green outdoor framing lumber product; as well as lumber for casework, furnishings, cabinetry and millwork.
In December, Gunns announced it was ending hardwood production in Tasmania. Two Gunns sawmills, in Tasmania, are now being offered by it administrator, Korda Mentha, as well as timber and wood chip distribution operations in Victoria, Western Australia, South AUstralia an Tasmania.