On March 9, Gunns Ltd notified the Australian Stock Exchange that potential investor Richard Chandler Corporation pulled out of its bid to buy a 40% stake in the company.
The Singapore-based investment firm of New Zealand millionaire Richard Chandler had planned to invest $150 million in the company. But it dropped the plan after consulting with stakeholders and communities.
The news was welcomed by environmentalists as another big setback for Gunns’ plans to get its $2.3 billion Tamar Valley pulp mill started in northern Tasmania.
Gunns continues to face financial trouble. Its share price has hit a low of 16 cents, it has a debt of $300 million and on February 27 it announced a $173 million half year loss.