FCF - Central North Island Forest Partnership
Fletcher Challenge Forests – Central North Island Forest Partnership
Auckland, 26 April 2002 - In response to market enquiry Fletcher Challenge Forests confirmed that the condition which it was unable to fulfil in the time available under the agreement entered into on 28 March 2002 related to financing. Key to the ability to raise finance was the need to reach agreement with a partner to fund part of the purchase.
Responding to speculation that the company did not want to proceed with the agreement with the Receivers, Fletcher Challenge Forests Chief Executive, Terry McFadgen said that this was incorrect. “We had a transaction which had a number of conditions in it, and we were unable to meet the timetable for the first of those conditions, being finance. We were comfortable that with additional time it was likely that we would do so, but the Receivers advised that they were unable to consider an extension of time”.
The Receivers terminated the agreement on the grounds that the financing condition had not been satisfied by its due date.
Mr McFadgen also confirmed that the consideration payable for the assets of the Central North Island Forest Partnership had been agreed with the Receivers at the amount of debt owed to the partnership’s banks of approximately NZ$1.5 billion.