TOP STORY: Dannevirke facing loss of 150 jobs

The potential loss of 150 jobs at Dannevirke's Feltex carpet plant would be a disaster for the southern Hawke's Bay town, Tararua mayor Maureen Reynolds said today.
Mrs Reynolds was on her way to the plant late this morning to hear the ANZ Bank-appointed receiver tell the workers whether their jobs would be safe in the near future. "What makes things worse is that there are many couples that work at the plant as well, so there could be double incomes lost," she said.
Mrs Reynolds said she had spoken to the manager of the plant a couple of weeks ago who, she understood, had been "moved on" to another job.
"I believe there is an interim manager there now."
The mayor had also spoken to Work and Income, which was working on a plan to help find alternative work for anyone who might lose their jobs.
"We have two big meat-processing plants here which have a large number of workers. Maybe some people could pick up work there.
"There is also the agricultural industry but that will be a matter for Work and Income to deal with."
She described the situation for workers at the plant, and for Dannevirke's 5000 population, as "absolutely disastrous".
"I feel the workers have been treated very poorly. They haven't been given enough information," the mayor said.
Union delegates representing workers at Dannevirke's Feltex Plant headed to the site this morning.
National Distribution Union organiser Kaye Hearfield said the union had advised the 150 workers at the Dannevirke plant to stay on site after they had finished their shift.
"Once our people leave the site, it may be hard for them to get back in," she said.
"We will be communicating with workers over the phone there today."
Graeme and Craig Turner, who for a fortnight have been leading a consortium in talks with ANZ over a $51m rescue bid for Feltex, said today they understood the bank intended to appoint a receiver.
Feltex revealed a $57.65 million annual loss on Monday.
"We understand the ANZ Bank has advised Feltex Carpets that it intends to appoint a receiver to Feltex Carpets and its Australian subsidiaries," the Turners said.
"The bank has taken this extremely serious action in the full knowledge that there was a fully funded rescue package to keep the company as a going concern and protect the interests of Feltex Carpets' 1300 staff, shareholders and creditors."
They said they have sought legal advice about an agreement they had reached with ANZ during the negotiation. The advice was that the agreements were enforceable "and we will be reserving our rights in this regard", the brothers said.
The brothers said the proposal had required the bank to fund working capital for Feltex until a shareholder vote in a month's time.
Once Feltex was sold, the amount would be repaid.
"The ANZ was not prepared to provide that support to Feltex to enable shareholders to vote on the rescue package," they said. Feltex owes the ANZ $135m.
"This will be an extremely difficult day and time ahead for Feltex workers and their families, shareholders, creditors and the communities that rely on Feltex," the Turners said.
Media reports yesterday said the ANZ was talking to Feltex's Australian-based rival, Godfrey Hirst, which offered and then withdrew a proposal when the Turner bid appeared.
The Turners said their package included refinancing from the BNZ, which would become Feltex's new banker. They also confirmed "Turnerco" and other investors' commitment to provide or underwrite $63.5m of capital and debt.
* Feltex shares tumbled 83 percent in the first few minutes of trading after the New Zealand sharemarket opened today. About 735,000 shares changed hands, with the price dropping 7.5c to 1.5c from last night's close of 9c.