Fortress Global Enterprises Inc. ("Fortress") has failed to receive any indications of interest pursuant to its previously announced strategic and financing initiative (the “Strategic Initiative”) by the required deadline under the financing agreement entered into among the company's wholly owned subsidiaries, Fortress Specialty Cellulose Inc. and Fortress Bioenergy Ltd., and their secured lenders or their affiliates.
The continued downward pressure on the market price for dissolving pulp as well as a variety of other factors and circumstances, have contributed to the Company's inability to generate positive free cash flow and maintain an adequate level of working capital. Since the launch of the Strategic Initiative in August 2019, the Company's Strategic Committee, with the assistance of its financial advisors, completed an extensive and international evaluation of various strategic and financing alternatives and engaged with numerous third parties and stakeholders. After allowing for the Strategic Initiative to be run thoroughly over several months, the process did not result in any acceptable third-party bids.
The Company has not received any notice of default from the Lenders nor have the Lenders taken any action or made any demand pursuant to the terms of the Financing Agreement. The Company continues to engage in active discussions with the Lenders in order to secure the long-term financial viability of the Company's business and develop a negotiated restructuring plan, however no assurance can be provided that any resolution will be reached or that the Lenders will not take enforcement measures under the Financing Agreement. There is also no assurance that the Company or the Lenders will not commence any form of creditor protection or insolvency proceeding imminently or in the near future.
Fortress operates its dissolving pulp business at the FSC Mill located in Thurso, Québec, which also operates in the renewable energy generation sector through its cogeneration facility.
