Forest & Marine Financial Limited Partnership

Forest & Marine Investments Ltd.
TSX VENTURE : FME

Forest & Marine Investments Ltd.
Forest & Marine Investment Trust

March 30, 2009 13:08 ET

Forest & Marine Announces CCAA Filing

NANAIMO, BRITISH COLUMBIA--(Marketwire - March 30, 2009) - Forest & Marine Investments Ltd. (TSX VENTURE:FME) -

Following up on the news release of March 17, 2009, the Partnership announces that it was unable to negotiate a suitable forbearance or refinancing arrangement prior to the expiry of the demand period imposed by its secured creditor, Asset Engineering LP ("Asset Engineering"). Accordingly, after consideration of all available alternatives, the Board of Directors of Forest & Marine Financial Corporation ("FMFC"), as general partner of the Partnership, has determined that it is in the best interests of all of its stakeholders for FMFC in its own capacity and in its capacity as general partner of the Partnership and in its capacity as manager of the Trust, to seek court protection from creditors under the Companies' Creditors Arrangement Act (Canada) ("CCAA"). The respective Boards of Directors of the Company, Forest & Marine Capital Ltd., Forest & Marine Insurance Services Ltd. and Treesea Holdings Inc. (these parties, along with the Partnership, Trust and FMFC are collectively referred to as the "F&M Group") have also determined that it is in the best interests of all of their respective stakeholders to seek court protection from creditors under the same CCAA filing.

The F&M Group sought and was granted such protection by order of the Supreme Court of British Columbia on March 26, 2009 (the "Order"). The Court has granted CCAA protection for an initial period of 30 days expiring on April 25, 2009, or such later date as the Court may order. The F&M Group will appear in Court again before the initial protection period expires on April 25, 2009. While under CCAA protection, creditors and others are stayed from enforcing any rights against the F&M Group and the F&M Group can attempt to restructure their affairs. The implications for the F&M Group's creditors and other stakeholders will not be known until the terms of the restructuring plan have been determined and the restructuring process is complete. To the extent possible, the Partnership intends to continue its day-to-day operations during the CCAA restructuring process.

Wolrige Mahon Limited was appointed as Monitor under the Order and the Order also provided that Ernst & Young Inc. has the right to monitor and review the books and records of the F&M Group.

The F&M Group was required to seek protection under the CCAA because they did not have sufficient liquidity to repay the approximately $13.3 million demanded by Asset Engineering within the time period required by Asset Engineering, under a credit facility previously entered into between the Partnership and CIT Business Credit Canada Inc., and subsequently assigned to Asset Engineering.

About the Forest & Marine Group

The Forest & Marine Group of companies includes the Partnership, Forest & Marine Financial Corporation as general partner of the Partnership, the Company, the Trust, Forest & Marine Capital Ltd., Forest & Marine Insurance Services Ltd., Treesea Holdings Inc., and Staffordshire Trust Company (collectively, the "Forest & Marine Financial Group").

Through the Partnership, the Forest & Marine Financial Group is engaged primarily in the financing of heavy mobile equipment, helicopters, tugs and barges utilized in the forest products and marine industries, as well as other non-forestry related businesses such as supermarkets and food distribution, feeder airlines, commercial fishing and processing and wholesale glass distributors. All business is conducted by the Partnership.

The Forest and Marine Financial Group has extensive knowledge of the forestry and marine industries; its primary focus is to provide funding to independent logging contractors and marine operators. The Forest and Marine Financial Group's geographic target markets are communities on Vancouver Island, the Queen Charlottes and throughout coastal British Columbia. The Forest and Marine Financial Group has provided specialized credit facilities for this niche market since 1983.

ON BEHALF OF:

FOREST & MARINE FINANCIAL LIMITED PARTNERSHIP (the "Partnership")

by its General Partner, Forest & Marine Financial Corporation

David R. Hitchcock, Director

FOREST & MARINE INVESTMENTS LTD. (the "Company")

David R. Hitchcock, Director

FOREST & MARINE INVESTMENT TRUST (the "Trust")

by its Manager, Forest & Marine Financial Corporation

David R. Hitchcock, Director

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contact Information

  • Forest & Marine Financial Group
    David R. Hitchcock
    Director
    (250) 753-0141 or Toll Free: 1-877-772-0022
    (250) 753-0173 (FAX)