Tas forestry company settlement

The liquidators of Tasmania's failed Gunns forestry company have reached a confidential settlement with shareholders who had launched a class action against the business's directors in 2011.

Former chairman John Gay was among those targeted by the action, and in a statement to the Australian Stock Exchange on Friday, liquidators IMF Bentham announced that the parties had reached a settlement.

"If court approval is received, IMF expects to generate revenue of approximately $4.9 million and a profit before tax of about $2.9 million," IMF boss Andrew Saker said, adding that court approval will be sought in March.