Frequently Asked Questions – Shareholders
Last updated 28-Apr-2009
What is KordaMentha's involvement with Timbercorp?
On 23 April 2009, the Directors of Timbercorp Limited (“Timbercorp”) appointed Mark Korda and Leanne Chesser of KordaMentha as voluntary administrators of Timbercorp Limited. Furthermore, voluntary administrators have been appointed over Timbercorp Limited Group of Companies (“the Group”) set out in the attached schedule. All voluntary administrators are partners of KordaMentha.
What is voluntary administration?
Voluntary administration is a process where the Company's business, property and affairs come under the control of an administrator. The administrator takes full control of the company to try to work out a way to save either the company or its business.
If it isn’t possible to save the company or its business, the aim is to administer the affairs of the company in a way that results in a better return to creditors than they would have received if the company had instead been placed straight into liquidation.
What is the role of an administrator?
The role, powers and duties of an administrator are set out in Part 5.3A of the Corporations Act 2001 (Cth).
The administrator must call meetings of creditors of the company. Two meetings of creditors are held, the first within eight business days after the administrator's appointment. The second meeting must be convened (subject to any extension from the Court) within 21 business days of the appointment date, and held no later than five business days after the end of the convening period. The purpose of the second meeting of creditors is to enable the creditors to decide the future of the company.
What are the next steps?
The administrators will implement a three point plan as follows:
1. Immediate suspension of forestry and horticulture operations whilst funding options are determined.
2. Develop a strategy for each forestry and horticulture product, project by project, then execute.
3. Attend to statutory reporting, investigation, creditor and shareholder liaison.
Have Timbercorp’s securities been suspended from the ASX?
The following securities are now suspended from quotation on the ASX:
- Timbercorp Limited (Administrators Appointed) (ASX:TIM)
- Timbercorp Limited (Administrators Appointed) - Unsecured Convertible Notes (ASX:TIMG)
- Timbercorp Limited (Administrators Appointed) - Bonds (ASX:TIMHB)
- Timbercorp Limited (Administrators Appointed) - Reset Preference Shares (ASX:TIMPB)
Can interests be transferred in Timbercorp Limited (Administrators Appointed) securities during administration?
In accordance with the Corporations Act, a transfer of shares or alternation of status of shareholders during voluntary administration is void unless the voluntary administrators give their written consent.
How can I obtain further information?
Members, creditors and shareholders can check www.timbercorp.com.au or www.kordamentha.com for developments or email the following with specific queries:
A dedicated hotline has been established for investors, creditors and shareholders. Tel: 1800 628 188.
QUESTIONS RELATING TO ORDINARY SHAREHOLDERS
Are shareholders able to attend the creditors’ meetings?
Prima facie No. Ordinary Shareholders are not creditors and cannot attend the creditors’ meetings.
