Forest & Marine Financial Limited Partnership

Forest & Marine Investments Ltd.
TSX VENTURE : FME

Forest & Marine Investments Ltd.
Forest & Marine Investment Trust

July 29, 2009 16:56 ET

Forest & Marine Updates CCAA Status-May Not Be Able to Continue Current Business

NANAIMO, BRITISH COLUMBIA--(Marketwire - July 29, 2009) - Forest & Marine Investments Ltd. (TSX VENTURE:FME) -

The Partnership, along with other entities in the Forest & Marine Group, remains under creditor protection under the Companies' Creditors Arrangement Act (Canada) ("CCAA") until July 31, 2009 by way of an order of the Supreme Court of British Columbia. The Partnership's ability to present a plan to creditors that contemplated the Partnership carrying on its current business, was predicated primarily on obtaining financing from the Business Development Bank of Canada ("BDC"). The term sheet from BDC, had as a condition, the requirement of additional financing/equity from another source that does not appear forthcoming. Given the likelihood that the financing will not occur, the Partnership does not expect that a plan can be formulated and approved that will involve the continuation of its business in its current form. The Partnership has notified the monitor under the CCAA proceedings of the current situation, and Wolrige Mahon Limited, as monitor, has given notice of the material adverse change.

The Partnership expects to go to court to seek a three month extension of the creditor protection period. During this additional time, the Partnership will pursue self-liquidation initiatives, with a view to paying out its secured creditor, Asset Engineering LP ("AE"). The Partnership will then file a restructuring plan providing for a self liquidation/downsizing. The Partnership will update its stakeholders during the process. AE and certain holders of the Partnership's Investment Receipts have filed applications to seek the appointment of a receiver to liquidate the Partnership.

Reports related to the Partnership and the Forest & Marine Group are posted on the Monitor's website at www.wmltrustees.com.

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)