Views: 0 Author: Site Editor Publish Time: 2019-06-24 Origin: Site
Fortress Global Enterprises Inc. ("Fortress" or the "Company") is pleased to announce that it has been granted a multi-year moratorium on upcoming principal and interest payments by Investissement Québec ("IQ") under IQ's outstanding loan (the "IQ Loan"). Fortress has received, without penalty, a postponement of approximately $45 million in principal and interest payments under the IQ Loan from June 30, 2019 to December 31, 2021. Interest payments during this period will be deferred and capitalized and the maturity date of the IQ Loan has been extended by five years to December 31, 2031. The principal amount of the IQ Loan, including capitalized interest, is to be repaid in quarterly instalments beginning on March 31, 2022. IQ has also agreed to extend the
moratorium and the term for an additional 24 months and subordinate its security in favour of third party lenders in the event that Fortress obtains new financing, subject to certain limitations.
Giovanni Iadeluca, Chief Executive Officer of Fortress, commented: "This multi-year deferral is a first step in strengthening our balance sheet and is a key component of our vision to create a long-term financing structure that will support the Company's growth. The moratorium will contribute to production initiatives currently underway at the Fortress Specialty Cellulose mill, increase the working capital available to the mill, and provide Fortress with greater financial flexibility. We are grateful to IQ for its continued support. IQ's willingness to agree to a further deferral and subordination of its security is reflective of our positive ongoing partnership with IQ and enables us to explore and evaluate new financing opportunities. We expect to provide updates on these opportunities as they become available."
Fortress operates its dissolving pulp business at the FSC mill located in Thurso, Québec, which also operates in the renewable energy generation sector through its cogeneration facility. Fortress operates its bioproducts business through Fortress Advanced Bioproducts Inc., which has laboratory and pilot plant facilities in Vancouver, British Columbia.