The chief executive of PaperlinX has quit as the troubled paper merchant sold more of its overseas operations to complete a strategic review.
PaperlinX said today that chief executive Toby Marchant would leave the company at the end of July.
Shares in PaperlinX were 0.6 cents, or 13 per cent, lower at four cents.
"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," Mr Marchant said in a statement.
"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."
PaperlinX vice-president Dave Allen will be the interim chief executive while a search is undertaken for a replacement for Mr Marchant.
PaperlinX also said on Tuesday 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.
"After the sale of five smaller European businesses and the consistently loss-making South African business announced today, our remaining businesses all operate in sizeable markets with significant market positions," Mr Marchant said.
"All have growth opportunities in diversified products and are the focus of the previously announced restructuring activities."
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.
PaperlinX said in June that it expects to report a loss of $171 million for the 2012 financial year following difficult trading conditions in the second half, restructuring charges and losses on the sale of its operations in the United States and Italy.
PaperlinX reported an annual loss of $108 million in the 2011 financial year, a loss of $225 million in 2010, and a loss of $798 million in 2009.
The company has said that demand for paper is expected to decline by about three to five per cent each year in most of its markets.
PaperlinX is seeking to expand its sales of non-paper products, especially packaging, and sign and display materials, which presented growth opportunities and were more profitable than paper.
AAP