Deal settles supply lawsuit

The lawsuit Carter Holt Harvey and Norske Skog filed against Tenon on the eve of its forest sale in February has been resolved out of court.

A settlement becomes effective when Tenon sells a right to cut its Tarawera forest.

It cost Tenon an undisclosed, but "not material", amount of money and gives Carter Holt and Norske a supply of wood.

Carter Holt and Norske Skog sued Tenon after it sold most of its forests, claiming it had contractual obligations to supply them with wood in perpetuity.

The settlement announced yesterday gives Carter Holt and Norkse Skog "certainty of supply" and a cash payment from Tenon "in recognition of them varying their perpetual supply rights".