Gunns has lost its court bid to have the Tasmanian Conservation Trust pay upfront for its legal costs in its challenge against the Tamar Valley pulp mill. The company has also told investors to ignore financial information it provided about the Bell Bay pulp mill.
Gunns applied to the Supreme Court in Hobart to have the Trust pay a bond in the event it lost the case and had to pay the company’s legal fees. Justice Stephen Holt said there was reason to believe that the Trust would be unable to pay the company’s costs. But he said this did not incline him to rule in favour of Gunns and dismissed the application.
Regarding the Bell Bay pulp mill the company now says that the market should wait for a prospectus as it will provide the most current financial information about the $2.3 billion project. The company wants to raise $400 million to get the project completed.
This warning by Gunns came as part of its update to the ASX when it extended its six-week trading halt another week.
