Money woes force restructuring plan

By DANIEL RIORDAN

Listed new economy player E-Force is in financial strife and seeking help from its creditors, less than a year after its transition from forestry company Paynter Timber.

E-Force chief executive Bill Farmer told the Stock Exchange yesterday that the company planned to put a restructuring proposal to bankers, other creditors and shareholders.

He said the financial difficulties were caused mainly by losses from the company's portal operations, which closed last week, and exorbitant lease payments entered into by firms in the E-Force Group several years ago.

Other factors that counted against the company were one-off foreign exchange losses and what Mr Farmer termed "expansionary expenditure."

One part of the group performing well is Product Sourcing International, which E-Force bought in June.

Mr Farmer said profits from PSI would be used to help finance the rest of the group's restructuring.

When E-Force closed its internet portal, chairman Richmond Paynter, who oversaw the transition from timber to e-commerce, resigned.

In the August six months, the company made a loss of $2.9 million after losing $1.6 million in the February year.

E-Force shares closed yesterday at 4.5c. At their highest point this year, they were worth 48c.