Forest & Marine Financial Limited Partnership

Forest & Marine Investments Ltd.
TSX VENTURE : FME

Forest & Marine Investments Ltd.
Forest & Marine Investment Trust

July 28, 2005 16:55 ET

Forest & Marine Investments Ltd.: Credit Facility Update

NANAIMO, BRITISH COLUMBIA--(CCNMatthews - July 28, 2005) - Forest & Marine Investments Ltd. (TSX VENTURE:FME) -

Further to its press release dated April 29, 2005, the Partnership advises that it has entered into an amended and restated forbearance agreement with its credit facility lenders, CIT Business Credit Canada Inc. ("CIT"). Pursuant to this agreement, CIT has agreed to continue to provide the Partnership access to the credit facilities under the financing agreement with CIT (the "Financing Agreement"), and, provided that no new default occurs, to forbear, until August 30, 2005 (the "Forbearance Period") from exercising its acceleration and enforcement remedies under the loan documents as a result of certain covenant breaches in order to permit the Partnership an opportunity to take one or more actions in order to remediate the breaches.

In consideration of CIT's agreement to forbear as set above, during the Forbearance Period, the rate of interest applicable to all prime rate loans will be equal to the Canadian Imperial Bank of Commerce prime rate plus 2%. In addition, the Partnership will pay to CIT a non-refundable forbearance fee in an amount equal to $50,000 and will be subject to reporting and other financial requirements as set out in the forbearance agreement.

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

Through the Partnership, the Forest & Marine 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 Group have 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 Group's geographic target markets are communities on Vancouver Island, the Queen Charlottes and throughout coastal British Columbia. Its customers employ in excess of 3,000 people. The Forest and Marine 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

John Hitchcock, Director

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

John Hitchcock, Director

FOREST & MARINE INVESTMENT TRUST (the "Trust")

by its Manager, Forest & Marine Financial Corporation

John Hitchcock, Director


The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of the contents of this news release.

Contact Information

  • Forest & Marine Investments Ltd.
    John Hitchcock
    Director
    (250) 753-0141
    (250) 753-0173 (FAX)