Timber company Gunns has foreshadowed a write down of its 200,000 hectare Tasmanian forest estate.
The company has told the Australian Securities Exchange the declining woodchip market has forced a review of the value of the asset.
The review is still underway and the company has not said how long it will take.
Gunns shares have been in trading halt for more than three months as the company negotiates a plan to raise about $400 million.
Financial analyst Matthew Torenius says it is bad news for shareholders.
"I would expect some quite substantial write downs potentially at the next financial result," he said.
"The capital raising was looking like being done quite quickly and has now dragged out substantially.
"You would imagine the terms of any capital raising would have worsened for existing shareholders." The company says the woodchip market has also impacted on its capital raising efforts but confidential negotiations are continuing with "various potential investors".