Fortress Global Enterprises secures up to $15M loan to continue operations
By P&PC Staff
By P&PC Staff
Fortress Global Enterprises Inc. has secured up to $15 million in credit for its wholly owned subsidiaries, Fortress Specialty Cellulose Inc. and Fortress Bioenergy Ltd.
The first advance will be $2.5 million, to be drawn September 4.
The loan will allow Fortress uninterrupted operations as it continues to execute its previously announced strategic and financing initiative, which includes seeking and pursuing a recapitalization, restructuring and/or business combination transaction.
“We are very pleased to have completed the facility arrangements within an expedited timeframe with the help of our two senior lenders,” says Giovanni Iadeluca, president and chief executive officer of Fortress, in a release.
“The provision of the facility will help address Fortress’ immediate financial needs during a period of unprecedented weakness in dissolving pulp pricing, and is a strong indication of the support and commitment of Fortress’s senior lenders to ensure that the Fortress Specialty Cellulose mill operations continue uninterrupted as we continue in earnest with our strategic initiative.”
Ten million dollars remains subject to approval of the Quebec government. The facility will accrue interest at a rate of 10 per cent per annum, payable monthly in arrears, with final payment due October 15, 2020 or earlier pending a restructuring that allows the loan to be paid in full.