GUNNS Limited shares have plunged to their lowest ebb, closing for the second day in a row at 10.5 cents.
The record low price gives the timber firm a market valuation of $89 million and compares with a company debt of more than $600 million.
The negative sentiment comes as Gunns seeks to co-ordinate a series of asset sales with debt repayment and other commitments.
On January 16 it must pay holders of its derivative security FORESTS a total of $2.8 million.
It is also seeking to negotiate an extension to $340 million senior debt facility due for repayment on January 31.
The firm has sought to sell assets to reduce the facility to $216 million.
Shipping industry sources said the woodchip ship Orana had been sold to undisclosed Chinese buyers for $9.56 million.
The company also has announced that it has an agreement to sell land and plantations in the Green Triangle in Victoria for $120 million with an anticipated settlement date before January 31.
A sale of the Southwood timber mill is expected to be concluded with Dell Vista Pty Ltd by the end of the month.
Shadforths analyst Matthew Torenius said the market was waiting to see what happened with Gunns' debt refinancing.
"Europe is not getting any better and not helping," he said.
More than 3.6 million shares traded yesterday.
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