SFK suspends dividends
January 19, 2006 By Pulp & Paper Canada
In an attempt to bulk up its cash reserves, SFK Pulp Fund has announced it will suspend dividends for the months of…
In an attempt to bulk up its cash reserves, SFK Pulp Fund has announced it will suspend dividends for the months of January and February. The stronghold on shareholder paybacks is a continuation of a suspension the company implemented in November and December to try and shore up its coffers.
“Despite the positive signs shown by pulp markets and the reduction of global pulp inventories likely to result from the capacity curtailment announced by some of our competitors, pulp prices have remained stable since last October,” said CEO Andr Bernier.
The company has set a goal of having $10 million in its reserves. It plans to reassess the possibility of reinstating the dividend in March.
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