Six months after debt-laden Great Southern's collapse as investors flew the sector, Gunns was named yesterday as the preferred new manager by receiver McGrathNicol.

"Gunns is involved in final negotiations and expects to enter into an agreement involving Gunns Plantations being proposed to growers as the replacement responsible entity of all or a majority of the schemes," the company said in a statement to the ASX.

However, a transfer to Gunns is being opposed by two other Western Australia bidders: Black Tree and Pulpwood Plantations.

Gunns already has 15 managed investment schemes of its own, and is moving further into the Green Triangle on the South Australia-Victoria border with construction of a $15 million woodchip mill at Portland.

The company is focusing strongly on plantation wood as it seeks to tie up a joint venture for the $2.2 billion Tamar Valley pulp mill with Swedish company Sodra, which has made this a condition of involvement.

McGrathNicol said that once agreement was reached with Gunns, receivers would urgently seek court orders to allow the convening of scheme meetings to vote on Gunns' proposal, which remained confidential.

"Assuming final agreement is reached, we currently expect that notices of meeting and scheme information booklets will be provided to investors during the next 10-14 days."

At the time the administrator was appointed, Great Southern employed more than 400 people and managed assets for more than 52,000 investor/growers.

A creditors' meeting in Melbourne on Thursday voted to liquidate 27 of Great Southern's 35 companies, along with the responsible entity, Great Southern Managers Australia Ltd.