Timbercorp placed in voluntary administration

Agribusiness company Timbercorp has been placed in voluntary administration with net debt of more than $900 million.

The forestry and horticulture group has invested more than $2 billion in agribusiness projects on behalf of 18,500 investors since 1992.

Administrator Mark Korda of KordaMentha said in a statement that “the company has been hurt by the combined impact of declining global asset values, tightening credit, the economic downturn and drought”.

Korda says all forestry and horticulture operations will be suspended pending his investigation of the company’s affairs and financial position. The administrator will then attempt to come up with a plan for each individual project within Timbercorp’s portfolio.

The company has approximately 170 staff based at offices in Melbourne, Perth, Hamilton, Mildura and Penola.

In the full year accounts issued in November 2008, Timbercorp reported current debt of $568 million, net debt of $903.1 million and net assets of $595 million.