Turners likely go ahead with legal action

23 Sep '06

2 min read

Craig and Graeme Turner are not ruling out legal action after their bid to take over Feltex was suddenly rejected by the ANZ Bank.

The problem started when the ANZ Bank backtracked from the deal and called in the receivers, to recover around $137 million which the ANZ says Feltex owes it.

The ANZ Bank's decision has been rash, precipitous and a turnaround on previous undertakings, according to the Turner brothers.

The brothers had no inkling that receivers were about to be called in and would have been happy to change their proposal had they got to know about the receivers.

The visibly upset Graeme Turner described the decision as devastating for workers and stakeholders, while Craig Turner described it as an unhappy day for New Zealand, in a recent press conference.

According to ANZ Bank sources, the bank had no option but to call in the receivers, which will now open the opportunity for a number of bids for Feltex to be sold as a going concern.

When the receivers will continue to operate the factory, workers at the Lower Hutt Woollen Spinning Yarn plant have been informed that is business as usual in the short term.

According to union delegates, the mood of a meeting with the receivers this morning was positive, but workers are still angry the company has reached this stage and that their jobs are still in doubt.

The carpet maker Feltex operates plants in New Zealand, Australia and the United States.

More Feltex Carpets News...