Forced liquidations possible now that Forest & Marine is in receivership

Now that the Forest & Marine Group has gone into receivership, the loans of up to 35 contract loggers on B.C.'s coast will be called in.

“There’s going to be a lot of forced liquidations,” said Kevin Mason, investment analyst at Equity Research Associates. “People are going to be scrambling around looking for alternatives.”

Contract loggers generally cut timber for major licensees or the B.C. government’s own timber sales program and do not have a guaranteed fibre supply. Without a guaranteed fibre supply, chances at other funding sources are slim.

Forest & Marine had been under court-ordered creditor protection when its prime creditor, Ontario liquidator Asset Engineering, called its loan. Forest & Marine sought alternative financing through the federal Business Development Bank of Canada (FDBC), but the FDBC backed away when British Columbia's government refused to sign a loan guarantee.

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Logging contractors lose financial backing - Loans called for up to 35 coast operators after financier goes into receivership (Vancouver Sun)