Forum Archive Index - August 2001

["Wedde, John" <John.Wedde@weltec.ac.nz>]

Greg,
A cursory glance at FFS's 2000 Annual Report reveals the largest debt item
in the report,"Term Debt" is in fact a liability of $4,653 mill. In the
notes to the accounts [note 26] most of this debt is $US denominated.
Therefore, Paul and Noriko are correct or am I missing something here? 
Cheers,
John

-----Original Message-----
From: greg [mailto:gregoire@paradise.net.nz]
Sent: Friday, 17 August 2001 13:42
To: sharechat@sharechat.co.nz
Subject: Re: RE: [sharechat] fletcher forists


No.  The debt referred to is what the CNIFP owes FFS.  It appears as an
asset on the FFS books.  This asset is now worth less.
 
Rgds,
greg
 
 
Correct Paul & Noriko

-----Original Message-----
From: Paul and Noriko [ mailto:pan@muh.biglobe.ne.jp
<mailto:pan@muh.biglobe.ne.jp> ]
Sent: Saturday, 18 August 2001 13:48
To: sharechat@sharechat.co.nz
Subject: Re: [sharechat] fletcher forists


Correct me if I'm wrong but if the FFS debt is in $US then if the $US is
weakening, it can be paid off with less $NZ right - therefore it should be
positive....?

----- Original Message ----- 
From: greg < mailto:gregoire@paradise.net.nz
<mailto:gregoire@paradise.net.nz> >  
To: sharechat@sharechat.co.nz < mailto:sharechat@sharechat.co.nz
<mailto:sharechat@sharechat.co.nz> >  
Sent: Friday, 17 August 2001 10:00
Subject: Re: [sharechat] fletcher forists

Graeme,

from what I can gather Fletcher Forest's NTA is about 58cps.  This figure
uses market valuation of the forest estate but assumes the company will
recover all of its US$225m debt from the CNIFP sale.

The receivers in charge of the CNIFP are actively seeking bids (with the
help of FFS it seems).  The biggest influence on the share price in the
short term is likely to be this sale process.  If the assets are sold so
that FFS can recover the whole US$225m (or even more) then there is likely
to be a substantial rise in the share price.  On the other hand if FFS can
manage to put together a consortium to buy the assets then the price will
also rise - but possibly not as sharply as if another company bought the
assets outright (FFS would then be a clear takeover target as current
manager of the CNIFP forest).

The current price has drifted down from 34c again, possibly this time due to
the weakening US dollar.  I think the debt remains in US currency so FFS is
in effect slightly worse off (can anybody confirm this?) 

Rgds,
greg

disc:  Own FFS
 



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