Gunns Group (Administrators Appointed)(Receivers and Managers Appointed) Fact Sheet Number 3 14 October Fact Sheet Number 3

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1 Below are some Frequently Asked Questions that you may have regarding the administration process of the Gunns Group. The answers are not intended to represent advice or detailed responses. In the event you have specific queries with respect to your rights or obligations, we strongly recommend you obtain your own independent advice. This Fact Sheet will continue to be updated throughout the administration process and we encourage you to refer to the Creditor Information section of the website at for any future updates. If your question is not answered via the Fact Sheet then you may refer specific questions to the following teams: Issue Contact Contact Phone Number Grower Investors Pre-appointment creditor claims GPL Client Services Contact Address (03) (03) Retention of Title KordaMentha (03) Continuation of trade KordaMentha (03) A list of entities to which the Administrators were appointed is contained at the end of this factsheet.

2 INDEX OF QUESTIONS GENERAL 1. What is s role as Administrators of the Gunns Group? 2. How can I stay informed about the administration of the Gunns Group? GROWERS 3. How can I obtain information regarding my scheme investment? 4. What are the Administrators plans for the various MIS s? 5. Whilst the MIS assessment and EOI campaign is completed, what else are the Administrators doing to protect my investment? 6. Are grower investors considered creditors of the Gunns Group? 7. Are there any grower investor representative groups? 8. How will the Administrators of GPL deal with any conflict within the Gunns Group? 9. Should I continue to make repayments on my loan relating to MIS projects? 10. What is happening with the MIS insurance coverage? 11. When will the grower investor information session be held CREDITORS / GROWER CLAIMS 12. How do I lodge a creditor s claim in the administration? 13. How much will grower investor claims be admitted for at the first meeting of creditors? 14. Which Gunns Group entity do Growers lodge their claims against? 15. If growers do not lodge a proof of debt at the first meeting of creditors will they be precluded from making a claim at a later date? MEETINGS OF CREDITORS/GROWERS 16. When was the first meeting of creditors held? 1st MEETING OF CREDITORS OUTCOME 17. I wasn t able to attend the meeting. Will the minutes of the meeting be available? 18. Were any Committees of Creditors formed and what is their purpose? 19. Are Ian Carson, Daniel Bryant and Craig Crosbie of still the Administrators LAND OWNERS 20. Will there be information sessions for land owners? - 2 -

3 SHAREHOLDERS 21. What is the standing of current shareholdings in Gunns Group? - 3 -

4 GENERAL 1. What is s role as Administrators of the Gunns Group? On 25 September 2012, Ian Carson, Daniel Bryant and Craig Crosbie of were appointed Administrators of the Gunns Group by the directors. Gunns Plantations Limited (GPL) (a subsidiary of Gunns Limited) acts as responsible entity / manager / trustee (RE) over a number of registered managed investment schemes (MIS). Control of this role is now the responsibility of the Administrators. The Administrators are currently undertaking an assessment of the viability of the various schemes in the Gunns Group and seeking expressions of interest (EOI) for a replacement RE and all stakeholders shall be updated once this process is complete. One of the key roles of the Administrators is to conduct investigations into the business, affairs and financial circumstances of the Gunns Group and report back to creditors. 2. How can I stay informed about the administration of the Gunns Group? will provide regular updates on our website For specific enquiries unanswerable by this document, please gunns@ppbadvisory.com. Grower investors should gunnsinvestors@ppbadvisory.com. We will endeavour to respond to your queries as soon as possible. GROWERS 3. How can I obtain information regarding my scheme investment? Grower investors may continue to contact GPL client services staff for relevant information on (03) or via to gunns.plantations@gunns.com.au. 4. What are the Administrators plans for the various MIS s? The Administrators have commenced an assessment of the various MIS, including their ongoing viability, any funding requirements and lessor position (for those MIS on leased land). We will provide updates of this assessment once the review progresses. The Administrators have also commenced an EOI campaign to seek parties who may wish to replace GPL as RE and continue to manage some or all of the MIS on behalf of grower investors. An advertisement will be placed in the Australian Financial Review on Monday 15 October We have also included the advertisement on the website ( We will provide regular updates as to progress via these fact sheets. The critical assessment of the MIS and our attempts to source a replacement RE will ensure that the interests of the grower investors are observed

5 5. Whilst the MIS assessment and EOI campaign is completed, what else are the Administrators doing to protect my investment? The Administrators obtained orders from the court for an extension to the date of holding the 1st creditors meeting and obtained an authority to growers notice of such a meeting. This was done solely to provide growers with proper notice of the meeting, thus allowing them to participate at the 1 st meeting of creditors to be held on 10 October The Administrators recently had orders granted by the court that the statutory rent free period per s443b of the Corporations Act 2001 be extended from 5 business days to 30 November 2012, given a material component of the MIS operate on leased land, noting a significant volume of lessors / landowners. This extended rent free period will better allow for the MIS assessment and EOI process to be completed in an orderly manner and will ensure land related lessors do not seek to take possession of scheme assets, hence preserving grower interests. The Administrators are also liaising directly with the Receivers and Managers in respect of various matters including ongoing forestry management, statutory maintenance, scheme related trust monies held by Gunns and insurance related issues. We await a response to a number of enquiries and will update growers in respect of any material issues. We have also negotiated a short extension of insurance coverage for Grower Investors (refer to Question 10). 6. Are grower investors considered creditors of the Gunns Group? This is a legal question which needs to be determined by the facts of each case. In certain circumstances grower investors may be entitled to claim as an unsecured creditor. It is not possible to determine at this stage whether grower investors will ultimately be unsecured creditors. The Administrators therefore considered grower investors as contingent creditors for the purposes of the first meeting of creditors. 7. Are there any grower investor representative groups? We understand a number of grower investor representative groups have been formed by various grower investors. You may wish to consider joining a grower investor group to have your interests centrally represented. The Administrators intend to communicate regularly with these grower investor representatives. 8. How will the Administrators of GPL deal with any conflict within the Gunns Group? At the time of the appointment of the administrators we carefully considered the question of whether there would be a conflict between the roles of Administrators of GPL and of other entities of the Gunns Group prior to accepting the appointment

6 We remain confident that there is no conflict between the roles of Administrators of GPL and that of the Administrators of the other entities of the Gunns Group of companies noting: We understand that, prior to the appointment of Administrators, the Board of directors of GPL took specific legal advice surrounding the issue of whether Administrators of GPL could be the same as the Administrators of the other Gunns Group companies. We understand that this advice was duly considered by the GPL board, who then resolved to appoint us as GPL Administrators. The Administrators Declaration of Independence, Relevant Relationships and Indemnities (DIRRI) was included with our circular to creditors. It sets out the benefits in us acting as Administrators of all of the entities in the Gunns Group and disclosed no risks to our independence. The DIRRI was reviewed by ASIC prior to its issue. The Receivers and Managers are in control of all of the Gunns Group assets other than scheme assets. Therefore, in relation to assets, the Administrators role is primarily focussed on the scheme assets, and therefore acting in the interests of growers in this regard. As well as contingent grower creditors and Banking Syndicate creditors, GPL has hundreds of landowner creditors. These landowner creditors own the land on which some of the MIS are conducted. Therefore, any Administrator of GPL, whether it be PPB Advisory or another insolvency practitioner, will be required to manage the same set of issues arising from the interests of the various stakeholders in GPL. As indicated in the DIRRI, should a conflict arise and the conflict was not capable of being resolved by agreement among the relevant stakeholders, the Administrators would seek directions of the Courts, on the appropriate action to take. Interested parties would be notified of any Court proceedings and have the opportunity to participate. Should a conflict arise, then we are confident the conflict will be managed appropriately, transparently and, if necessary, with the assistance of the Court. 9. Should I continue to make repayments on my loan relating to MIS projects? We recommend that you seek your own independent legal advice regarding your rights and obligations. 10. What is happening with the MIS insurance coverage? Great Southern Plantation (GPS) Schemes We have negotiated with the MIS insurer, Agricola, insurance cover for all growers with holdings in the GPS Schemes for the period 1 October 2012 through to 31 October We will shortly contact growers of these schemes to help facilitate them purchasing continued insurance post 31 October 2012 should they elect to do so

7 GPL Woodlot Projects At the time of the Administrators appointment, the premiums paid by growers that elected to take out insurance per the GPL Woodlot Projects for the period 1 July 2012 to 30 June 2013 had not been paid to the insurer, Agricola. We understand that these premiums were held by GPL s parent entity, Gunns. We have written to the Receivers and Managers seeking payment of these premiums. Given the above, we have negotiated and extension to making the premium payment to Agricola until 31 October 2012 in respect of the GPL Woodlot Projects We will provide further updates in respect of the grower related insurance as and when developments occur. 11. When will the grower investor information session be held? We intend to hold information sessions for the benefit of grower investors in Sydney and Melbourne. We expect the first grower investor information session will be held in the week commencing 22 October We will notify grower investors of the exact timing and location of these information sessions either via and / or circulars posted on our website and that of Gunns CREDITORS / GROWER CLAIMS 12. How do I lodge a creditor s claim in the administration? We are presently not requiring creditors to submit proof of debt forms. Informal proof of debt forms were required to be lodged by creditors for voting purposes at the first meeting of creditors (which was held on 10 October refer items 16 to 19 for details). We will notify creditors when proof of debt forms are required to be lodged How much will Grower investor claims be admitted for at the first meeting of creditors? For the purposes of the first meeting of creditors, the Administrators recognised a contingent claim was likely to be indeterminable. As a claim could not be quantified by a just estimate of the quantum of the debt, the Administrators allowed contingent creditors to vote for a nominal amount of one dollar ($1). 14. Which Gunns Group entity do Growers investors lodge their claims against? For the purposes of the first meeting of creditors, Growers that submitted claims were admitted as contingent creditors of GPL, since it is the RE of the Schemes

8 15. If Growers did not lodge a proof of debt at the first meeting of creditors are they precluded from making a claim at a later date? The proofs of debts submitted at the first meeting of creditors were for the purpose of voting only. Growers investors who did not lodge a proof of debt will still be able to lodge a claim at any stage in the future, including for the purpose of voting at the second creditors meeting. QUESTIONS LEADING TO THE 1 ST MEETINGS OF CREDITORS 16. When was the first meeting of creditors held? The first meeting of creditors was held on 10 October The time and place of the meeting of creditors was set out in the notice of meeting to creditors. Below is a link to that notice: Creditors were also invited to listen to the first meeting of creditors via a live webcast: 1ST MEETING OF CREDITORS OUTCOME 17. I wasn t able to attend the meeting. Will the minutes of the meeting be available? The summary minutes of the meeting will be lodged with the ASIC by 24 October A word for word transcript will not be lodged to ensure the minutes are user friendly and to avoid disclosing sensitive information that may potentially prejudice the outcome of investigations conducted by the Administrators. The minutes can also be found on our website ( 18. Were any Committees of Creditors formed and what is their purpose? Committees of Creditors were formed for Gunns Limited and GPL. The Committee of Creditors represents a cross-section of creditors (e.g. grower investors, land owners, employees, trade creditors and financiers) and will consult with the Administrators and receive updates on the conduct of the administration. 19. Are Ian Carson, Daniel Bryant and Craig Crosbie of still the Administrators of the Gunns Group? Yes, Ian Carson, Daniel Bryant and Craig Crosbie of were reconfirmed as the Administrators of the Gunns Group, including GPL at the 1 st meetings of creditors

9 LAND OWNERS 20. Will there be information sessions for land owners? The Administrators intend to hold separate information sessions for the benefit of land owners over the coming weeks. We will notify land owners of the timing and location of the information sessions via and/or circulars posted on our website and that of Gunns SHAREHOLDERS 21. What is the standing of current shareholdings in Gunns Group? During the period of the administration the position of the shareholders of the Gunns Group is frozen. A transfer of shares can only occur with the Administrators or the Court s consent. The Administrators must be satisfied that any transfer is in the best interests of creditors as a whole. At this point, the Administrators do not believe it is in the best interest of the any company in the Gunns Group to allow the transfer of any shares, however we will provide updates should the position change

10 ASSOCIATED FOREST HOLDINGS PROPRIETARY LIMITED ACN AUSPINE LIMITED ACN AUSPINE PLANTATIONS PTY LTD ACN AUSPINE TREE FARMS PTY LTD ACN EAST COAST PASTORAL CO PTY LTD ACN GTP ALEXANDRA PTY LTD ACN GTP CHINA PTY LTD ACN GTP HEYFIELD PTY LTD ACN GTP HOLDINGS PTY LTD ACN GTP SEYMOUR PTY LTD ACN GTP SOUTHWOOD PTY LTD ACN GUNNS CONSOLIDATED INVESTMENTS PTY LTD ACN GUNNS FINANCE PTY LTD ACN GUNNS FOREST PRODUCTS PTY LTD ACN GUNNS HOLDINGS PTY LTD ACN GUNNS LIMITED ACN GUNNS NEW ZEALAND PTY LTD ACN GUNNS PLANTATIONS LIMITED ACN KAURI TIMBER COMPANY LTD ACN KVVIC PTY LTD ACN MANNA HOLDINGS PTY LTD ACN NORTHERN FOREST INVESTMENTS PTY LTD ACN S.E.A.S. ESTATES PTY LTD ACN S.E.A.S. PLANTATIONS PTY LTD ACN S.E.A.S. SAPFOR FORESTS PROPRIETARY LIMITED ACN S.E.A.S. SAPFOR HARVESTING PROPRIETARY LIMITED ACN S.E.A.S. SAPFOR INVESTMENT SERVICES PROPRIETARY LIMITED ACN SAPFOR TRADING PROPRIETARY LIMITED ACN SORISDALE PTY LTD ACN SOUTH EAST AFFORESTATION SERVICES PROPRIETARY LIMITED ACN TASMANIAN PULP & FOREST HOLDINGS LIMITED ACN TASMANIAN SOFTWOODS PTY LTD ACN TASPINE PTY LTD ACN TBVIC PTY LTD ACN TIMBERSALES PROPRIETARY LIMITED ACN WESLEY VALE ENGINEERING PTY LTD ACN (ALL ADMINISTRATORS APPOINTED) (ALL RECEIVERS AND MANAGERS APPOINTED) (THE GUNNS GROUP )