Fortress Paper recives defferal for IQ loan
March 31, 2014
By Canadian Biomass
March 31, 2014, Vancouver, B.C. - Fortress Paper Ltd. announced that it has been granted a deferral on its upcoming principal payment under its $102.4 million project financing loan with Investissement Quebec relating to its Fortress Specialty Cellulose Mill.
March 31, 2014, Vancouver, B.C. – Fortress Paper Ltd. announced
that it has been granted a deferral on its upcoming principal payment under its
$102.4 million project financing loan with Investissement Quebec relating to
its Fortress Specialty Cellulose Mill.
The Company received, without penalty, a deferral of
approximately $4.3 million in principal repayment which was payable in the
second quarter of 2014. This principal payment deferral is in addition to the
previously disclosed deferral of approximately $5.3 million in principal and
interest payments which were payable during the first quarter of 2014 under the
IQ Loan. The purpose of these deferrals is to provide the Company with greater
financial flexibility and increased working capital.
Chadwick Wasilenkoff, Chief Executive Officer of Fortress
Paper, commented: "The recent principal payment deferral enhances the
financial flexibility of Fortress Paper and is reflective of our positive
ongoing partnership with Investissement Quebec (IQ) during this transitory
period in the dissolving pulp industry. This interim measure is greatly
appreciated while we continue to work towards a more meaningful and long-term structure
that would further enhance the Company's financial flexibility." Mr.
Wasilenkoff further added, "We feel current market conditions in
dissolving pulp are not sustainable and not reflective of the medium to
long-term growth in demand. We feel the flexibility provided by IQ together
with the progress we have made in stabilizing our Security Papers division
should provide Fortress Paper a firm base to build towards an improved outlook
for 2014. In addition, we will continue to explore and evaluate various
opportunities to further enhance shareholder value in the short and
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