Financial Reports & Markets
Fortress Global Enterprises fails to secure bid for financing
By P&PC Staff
By P&PC Staff
Fortress Global Enterprises has concluded its previously announced review and announced it has not secured a third-party bid to finance the company and its subsidiaries, Fortress Specialty Cellulose and Fortress Bioenergy.
The company has not yet received notice of default from its lenders, nor has it filed for creditor protection or insolvency.
“The continued downward pressure on the market price for dissolving pulp as well as a variety of other factors and circumstances have contributed to the company’s inability to generate positive free cash flow and maintain an adequate level of working capital,” Fortress Global Enterprises says in a release.
“Since the launch of the strategic initiative in August 2019, the company’s strategic committee, with the assistance of its financial advisors, completed an extensive and international evaluation of various strategic and financing alternatives and engaged with numerous third parties and stakeholders. After allowing for the strategic initiative to be run thoroughly over several months, the process did not result in any acceptable third-party bids.”
Fortress operates its dissolving pulp business at the FSC Mill located in Thurso, Quebec, which also operates in the renewable energy generation sector through its cogeneration facility. Fortress operates its bioproducts business through Fortress Advanced Bioproducts, which has laboratory and pilot plant facilities in Vancouver, British Columbia.