Citic dispute still in court

The Chinese Government-owned Citic yesterday played down speculation that it was close to settling a dispute with Fletcher Forests over the Central North Island Forestry Partnership.

Citic said in a statement from its New Zealand office that High Court action to "resolve the dispute continues on schedule."

It also talked of disappointment with the lack of progress in negotiating a settlement.

At a special meeting of Fletcher Challenge shareholders last week, the group's chief executive, Michael Andrews, indicated that he was confident of resolving the impasse with Citic.

Yesterday, he said that while the dispute had yet to be resolved, discussions were continuing.

"We share Citic's disappointment at the time the discussions have already taken but we believe there is a desire on the part of both parties to seek resolution."