Receivers take control of B.C. forest industry financier
August 18, 2009 By Pulp & Paper Canada
Recievers have assumed control of Forest & Marine Financial, a financier for small forestry businesses, af…
Recievers have assumed control of Forest & Marine Financial, a financier for small forestry businesses, after the company was unable to formulate an acceptable restructuring plan, according to the Nanaimo Daily News.
The company sought creditor protection on March 26 after its chief creditor, Ontario-based liquidator Asset Engineering, called in a $13.3-million loan. The Daily News reports that president and CEO David Hitchcock learned on Aug. 12 that the court had not granted F&M creditor protection or granted its request for another 10 months to come up with the $13.3 million it owes.
The firms that rely on F&M for financing will have to find a new source as the receivers examine the company’s books and evaluate its business model, said Hitchcock.
“The financial markets are still very tight. I have no idea if some of our customers will be able to get the financing they need elsewhere.”
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