Forestry company Claymark Group has been tipped into receivership.
Grant Graham, Brendon Gibson and Neal Jackson of financial advisory firm KordaMentha have today been appointed as receivers to the companies included in the group.
The business currently employs 510 workers across six manufacturing sites in Bay of Plenty, Thames and Auckland, producing radiata pine wood products for export.
According to the receivers, the company has an annual turnover of around $160 million.
The receivership is limited to New Zealand and does not affect any of Claymark's US-domiciled businesses.
The receivers said their intention is to continue to trade the business while they work through the key issues.
The receivership follows on from a failed deal announced in late August that would have NZ Future Forest Products take over Claymark Group.
"As a result of NZFFP not yet settling, the group came under increasing working capital pressure to stabilise the business and fund future growth," the receivers said in a statement.
"The Group has been unable to secure additional funding and, as a result, the board of Claymark has had to take the unfortunate step of requesting its senior debt provider to appoint receivers."
The receivers say the contract with NZFFP remains in place and they will attempt to see that through. Failing this, they will look for an alternative buyer.
The receivers would not provide a figure for the total debt of the company, saying they were still working through this.
Claymark managing director Mark Clayton confirmed he is committed to working with receivers to maximise the return to all stakeholders. He said his immediate focus is to help the receivers to focus on the protection and realisation of assets and communicate with employees, creditors, customers and stakeholders.