PRESS DIGEST-Australian Business News - July 31

Compiled for Reuters by Media Monitors. Reuters has not verified these stories and does not vouch for their accuracy.

THE AUSTRALIAN FINANCIAL REVIEW (www.afr.com)

Regional pay television group Austar United Communications (AUN.AX) announced results for the June half yesterday, recording a A$35.5 million profit compared to a A$7.6 million loss during the corresponding period last year. Chief executive John Porter said that cash balances and cash flows would be used to make debt payments due over the next few years, but the company would also seek to refinance part of its A$850 million in senior debt. Mr Porter said the company expects to make an announcement on a refinancing deal in coming weeks. Page 43.

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Coal gas-to-liquids company Linc Energy (LNC.AX) placed itself in a trading halt yesterday as it prepares to make an announcement on a capital raising. Analysts say the company is likely to seek between A$50 million and A$60 million to assure funding for the development of its coal projects in Queensland and South Australia. Chief executive Peter Bond said of the move, 'it just takes that uncertainty out of how you plan to go forward over the next year or two without worrying about whether you're going to have an asset sale.' Page 43.

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Mining company Whitehaven Coal yesterday announced plans to gather more than A$300 million in funds through an institutional share placement and the sale of a stake in its Narrabri coal project. The fully underwritten share placement will raise up to A$176 million, while the sale of 7.5 percent of the Narrabri operation is expected to generate over A$125 million. The announcement has raised speculation that Whitehaven may be looking to take a leading role in consolidation within the sector. Page 44.

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Forestry company Gunns (GNS.AX) has been selected as the preferred partner to fund and operate a new hardwood chip export facility at Victoria's Port of Portland. Previous plans to build the facility collapsed following the failure of two of the companies involved, managed investment schemes Great Southern and Timbercorp. Port of Portland Group chief executive Scott Patterson said the new facility, the second of its type at the port, was needed to address expected bottleneck problems. Page 45.