Big forestry contractor to be wound up

North Island forestry contractor Forest One owes millions of dollars, has ceased trading, and will be wound up.

The Riverhead, Auckland, company harvested and transported trees and was described as one of the country's bigger forestry contractors.

The company's demise is seen by some as another sign of tough times in a forest industry hit by the high dollar and high shipping costs.

The company was one of the losers last year from the receivership of Huaguang Forests on the East Coast, which left unsecured creditors empty-handed despite the sale of forest assets for $47 million.

Forest One spokesman Andrew Montgomerie said the company ceased trading on February 1 and would be wound up.

He was the chief executive and an owner.

 

Creditors said the company's debts were in the millions of dollars.

A Rotorua company, HarvestPro Logistics, says it has taken over Forest One's harvesting contracts, securing work for 80 former Forest One staff, but has not taken over the trucking operation.

Creditors are waiting for news of a receivership or liquidation - and how much they may get back.

"It's heartbreaking," said Ted Heath, of Massey, who repaired hydraulics for the company.

"$10,000 for me - I'm only a small operator - it just about knocks me out."

The big creditors include an arm of the Bank of New Zealand, finance company UDC, Gough Gough & Hamer, and the associated Gough Finance.

Montgomerie said Forest One operated in the East Coast, Northland, and the central North Island.