Increase in Doubtful Debt Provision
12-Mar-2009

Timbercorp Limited has announced an increase of approximately $24 million in its provision for doubtful debts. This provision has been brought forward as part of an interim review following continued pressure on loan and project payment defaults to the end of February 2009.

The increase is subject to final assessment and audit review in conjunction with the preparation of the half year accounts for the 6 months ended 31 March 2009.

The increase in default levels which are now believed to be largely contained, are primarily due to the effects of the wider economic crisis, and as such, it is unlikely that the situation will significantly improve prior to the release of the half year results.

The increase takes the provision for doubtful debts to $42 million, or 8% of the total receivables book.

Timbercorp holds security over the borrowers’ lots and effectively their right to income, both of which increase in value over time. This will help offset the impact of defaults in the future.

For further information call:
Sol Rabinowicz, CEO & Executive Director, (03) 8615 1200
Matt Trewin, Communications Manager, 0407 684 765