5 December 2019

E tū says uncertainty hangs over the future of forest products firm Claymark Group after it was placed in receivership, though the hope is it will find a buyer.

E tū has 20 members at the Claymark processing site on Geddes Road in Rotorua, one of six sites around the country.

E tū Team Leader, Raymond Wheeler says news of the receivership came as “a bolt from the blue but considering the news, the mood of the members remains positive and hopeful a buyer can be secured.”

He says the union has spoken to the receiver and for now the company continues to trade as normal.

“That is good news given this time of year,” says Raymond.

“There is a sale and purchase agreement with New Zealand Future Forest Products which is open until 31 December, so they are obviously still negotiating. But because Claymark couldn’t meet its debt repayment schedule, the receiver’s been called in and will work with the parties to broker a deal.

“Meanwhile, everything is business as usual. The guys are being paid their wages and leave entitlements over the Christmas break will be paid in the usual way.”

He says there is optimism that if the NZFFP deal falls over, there could be alternative buyers.

“It’s now in the hands of the receivers. We’ll have more certainty about where this goes next once we know what happens on 31 December.”

ENDS

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