Conifex amends lumber credit facility; plan required by Nov. 25

By Wendy Van Sickle

Columbus, Ohio, Oct. 1 – Conifex Timber Inc. has amended its lumber segment senior secured credit facility to, among other things, provide additional short-term liquidity and waive some covenants and milestones, according to a news release.

The credit agreement requires Conifex to provide an asset divestment and restructuring plan that is acceptable to its senior lenders on or before Nov. 25, which could involve asset divestitures in addition to the previously announced sale of its Fort St. James sawmill complex and associated tenure to Hampton Lumber.

Conifex said it is working with lenders and plans to present and implement an acceptable asset divestiture and restructuring plan.

If the company does not present a plan that is acceptable to its lenders by the deadline, it will be an event of default under the credit agreement and, unless waived, Conifex would commence consensual voluntary proceedings under applicable debtor relief laws, according to the release, which adds that there can be no assurance that the company will be able to provide an acceptable plan as required by the amendment.

Based in Vancouver, B.C., Conifex makes lumber products.

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