FCF Provides Update Re Court Action By CHH
FCF Provides Update Re Court Action By CHH And Norske Skog
Auckland --Fletcher Challenge Forests (FCF) confirms that Carter Holt Harvey (CHH) and Norske Skog (Norske) today issued court proceedings against the Company.
The proceedings seek clarification and performance of the pulp wood supply obligations of the FCF Group to those companies, against the background of the proposed sale of its forests to the Kiwi Consortium.
CHH and Norske are not seeking an injunction in respect of the forest sale to the Kiwi Consortium or the capital return proposed for March, which are to be considered by shareholders at their meeting this Friday.
The Company does not agree with CHH’s and Norske’s position that the forest sale will cause the pulp wood supply arrangements with them to be breached. The Company obtained extensive legal advice on its obligations to CHH and Norske before entering into the forest sale agreement with the Kiwi Consortium.
The Company has made appropriate contractual arrangements to ensure that CHH’s and Norske’s pulp wood supply arrangements will be met following the forest sale.
The Company confirms its commitment to the forest sale, and will vigorously oppose the legal proceedings filed against it by CHH and Norske today.