The chief executive of Paperlinx, Toby Marchant, has resigned from the troubled paper company following further sales of its overseas operations and the completion of an extensive strategic review.
"We have reached a major turning point in the transformation of Paperlinx, and the board and I have agreed that it is an opportune moment for me to step down as chief executive," Marchant said.
"I am doing so knowing that we have taken major strides towards dealing with our significant legacy issues, in the midst of exceptionally hostile conditions, and that we are now on the right path," he said.
Paperlinx vice-president Dave Allen will be the interim chief executive while a search is undertaken for a replacement for Marchant.
Paperlinx also announced that it had agreed to sell its operations in Slovakia, Hungary, Slovenia, Croatia and Serbia to the Heinzel Group.
Net proceeds after debt and transaction costs are expected to be about $21 million.
Paperlinx will also sell its loss-making operations in South Africa to local management, with net proceeds of $6 million.
The sales bring to a close a strategic review that started 12 months ago.
Paperlinx said the review had improved group liquidity, reduced organisational complexity and reduced expenses.
