SUNBIZ

Future Forests’ Extraordinary Meeting To Map Way Forward

Future Forests (Fiji) Limited will hold an extraordinary general meeting of shareholders to discuss the company’s solvency-related challenges and map the way forward. The EGM will be held on Thursday
04 Jun 2016 08:54
Future Forests’ Extraordinary Meeting To Map Way Forward

Future Forests (Fiji) Limited will hold an extraordinary general meeting of shareholders to discuss the company’s solvency-related challenges and map the way forward.

The EGM will be held on Thursday June 16 at 2.30pm at the Tanoa Plaza Hotel in Suva.

In the meanwhile, the board of directors of Future Forests have advised South Pacific Stock Exchange they no longer meets the requirements of 12 months working capital requirements contained in Section 3 of the SPSE Listing Rules.

The directors therefore consider it is in the best interest of the investors and shareholders that the voluntary suspension on trade of FFF Shares and FFF Notes remains in place.

This would be till such time that the Future Forests is able to resolve the company’s solvency related challenges.
Damage from Winston

As Tropical Cyclone Winston hit the country on February 20, the path of the southern part of its eye crept over the Future Forest Fiji nursery in Tova, Ra Province during the night.

Following a survey of their business assets and forestry estate, the company established that extensive damage had been sustained.

Future Forests (Fiji) managing director, Masum Buksh, said the future of the company had looked very bright before it was all devastated by Winson.

A $1.6 million contract for seedling supplies had just been signed for the European Union-funded reforestation project in the Western Viti Levu when the cyclone caused extensive damage to its operations in Ra.

“The damage of the plantations is significant and catastrophic,” Mr Buksh said.

“The remaining stems have been damaged to the extent that the plantations shall have to be replanted to rectify the situation.

“Replanting of the plantations shall require substantial work to re-prepare the land for planting.

“Cutting and removal of fallen and broken trees will be required to mitigate fire risk and provide access to staff to undertake planting and subsequent activities.

“This rectification work shall come at a substantial loss, to the extent that it would potentially be better to seek alternative land.”

Future Forests (Fiji) also suffered a blow from the Cyclone to its Nursery in Ra.

The damage to the Nursery affected the seedling contract with EU/SPC Reforest Fiji project, which in turn affected revenue.

It lost $180,000 worth of seedling sales, this loss in sales crested an immediate cash flow issues.

The company’s saw mill operations in Ra took a direct hit from Cyclone Winston which resulted in complete destruction of the saw mill shed and utilities and causing serious damage to the saw milling machinery.

Feedback: rachnal@fijisun.com.fj

Fiji Sun Instagram
Fiji Plus
Subscribe-to-Newspaper