Te Arawa eyes buying mill

JOBLESS: Brian Pohatu, along with more than 130 of his Tachikawa workmates, learned yesterday they had lost their jobs. PHOTO/STEPHEN PARKER 251013SP2

Tachikawa confirms 130 workers will lose their jobs

While workers at Rotorua's Tachikawa Forest Products were told they had lost their jobs, Te Arawa were meeting to discuss the possibility of purchasing the business.

Yesterday, receivers for the failed business told workers they had lost their jobs at the mill after they were locked out last Friday.

However, the deputy chairman of Te Arawa Federation of Maori Authorities, Te Taru White, said the organisation had been asked to bring together a group of iwi stakeholders to discuss the possibility of investigating the purchase of the business.

"Our collective is already engaged in forestry and this could fit in well.

"Should we proceed to look at it in more detail, or even move into a due diligence phase?"

He said some of the iwi organisations invited to the meeting included Te Arawa Lakes Trust and Te Arawa Group Holdings (the commercial arm of Te Arawa treaty settlement organisation Te Pumautanga O Te Arawa Trust) and other trusts and corporations involved in forestry and primary sector industries.

"We won't know how much money is involved until the receivers send out a prospectus," Mr White said.

"We are well aware there are about 130 people out of work - a lot of them are our own people - so this is something we should at least look at.

"While we are very cognisant of the employment issues, the business case must also stack up."

Brendon Gibson and Grant Graham, of receivers KordaMentha, confirmed yesterday they had started actively marketing the company's business and assets for sale, but gave no indication of what it was worth.

"We expect the sale process will attract interest from New Zealand and overseas and we invite anyone who wants to explore the opportunity to register their interest with us.

"We and management have now formed the view that it would not be possible to trade profitably during the receivership," Mr Gibson said.

First Union officials, who represent the majority of workers at the mill, said workers were "desolate at losing their jobs, but also somewhat relieved at knowing where they stood".

First Union general secretary Robert Reid said workers were owed a significant amount of money, but would have to wait for some time before getting it.

"They are entitled to holiday pay and redundancy payments up to a maximum of $20,340 depending on how many years' service they have.

"But they will have to wait for creditors to pay the company before they get anything and may even have to wait until the assets are sold."

Mr Reid said representatives from Work and Income, Inland Revenue and Whanau Ora were at the meeting to offer advice to laid-off workers.

"They have guaranteed to us that 'Tachikawa' will be the magic word when they contact them and have told us they will be able to provide emergency grants and payments," Mr Reid said.

Tachikawa chief executive Koji Tachikawa said he thanked staff, contractors, customers, suppliers and the community for the service and support they had given the company in the past 24 years.

"It is with regret I had to close the doors of Tachikawa and I would like to personally apologise to all staff, contractors, customers, suppliers and the community that have been affected by this decision.

"I am hopeful the receivers are able to find a buyer and that the sawmill can restart its operations in the very near future under a new owner and I am assisting them with this process any way I can."

The company's annual report, published on the Companies Office website, shows that during the year ending December 31, 2012, directors' remuneration of $255,000 was paid to Koji Tachikawa and $190,000 was paid to Kazunori Kurata.

The company's net loss after tax for the same period was $2,957,213.