Timbercorp investor growers are satisfied with the sale of the company's forestry assets to the US-backed Australian Bluegum Plantations (ABP) for $345 million.
ABP is backed by international plantation forestry investment managers Global Forest Partners (GFP).
The sale was finalised on 30 September after the Supreme Court of Victoria approved a deal that ensured creditor Commonwealth Bank of Australia (CBA) will receive the $152 million it is owed.
Of the proceeds of the sale, $197.7 million will go towards the 10,500 investor growers involved in the managed investment scheme (MIS).
However, CBA will also be entitled to $25 million of the investor growers' cut of the sale.
"Given the environment and circumstances it is a reasonable price. Out of the seven bids that were put in this was the best one," TC Growers Reference Group spokesperson Tom Weir said.
"But the one frustrating aspect of the deal is CBA's cut of the grower proceeds. CBA have made a $4.4 billion after tax profit and they are still carrying this through."
However, Timbercorp liquidator KordaMentha said in a statement that it was a positive result for the investor growers.
"This is a good outcome for investor growers, creditors, staff, customers, landlords, local communities and the Australian timber industry. The business will be in the hands of first-rate, experienced plantation forestry managers who are committed to long-term excellence," KordaMentha liquidator Mark Korda said.
Korda said the liquidators would contact investor growers soon about the process for reconciliations and payments for individual growers.
The assets under the sale agreement include 92,000 hectares of plantations, 39,000 hectares of freehold land, leasehold rights to 53,000 hectares and the business infrastructure.
