Forest & Marine Financial Limited Partnership

Forest & Marine Investments Ltd.
TSX VENTURE : FME

Forest & Marine Investments Ltd.
Forest & Marine Investment Trust

October 18, 2005 19:45 ET

Forest & Marine Investments Ltd.: Further Credit Facility Update

NANAIMO, BRITISH COLUMBIA--(CCNMatthews - Oct. 18, 2005) - Forest & Marine Investments Ltd. (TSX VENTURE:FME) -

The Partnership advises that CIT Business Credit Canada Inc. ("CIT") has agreed to further extend the forbearance period under the existing Forbearance Agreement dated August 30, 2005 among CIT, the Partnership, the Company and the other guarantor parties thereto (the "Forbearance Agreement") from October 7, 2005 to November 30, 2005 (the "Forbearance Period").

In consideration of CIT's continued agreement to forbear, 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 further non-refundable forbearance fee in an amount equal to $50,000 and will otherwise be subject to the same terms and conditions 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


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Contact Information

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