The red ink follows losses of SKr288m in 2011 and fourth quarter losses for the last three months of 2012 of SKr675m. Sales in the last three months of 2012 were SKr152.9m.

RusForest, the Sweden-based company that operates five sawmills and has an annual capacity of 400,000m3 of sawn timber, sought to restructure the company at a meeting of bondholders in January. Directors said without the restructuring the company would be insolvent.

It has minimal cash and was forced to secure a bridging loan and additional secured and unsecured debt of SKr586m.
Bondholder and shareholder approval gas since been received and RusForest said in its annual report that it sees no substantial risks to the deal not going through at the end of March.

RusForest operates in Arkhangelsk and eastern Siberia. Last year it harvested almost 800,000m3 of sawlogs and produced 292,590m3 of sawnwood. This was up from 536,700m3 of sawlogs in 2011 and 221,580m3 of sawnwood.