Advanced Fiber suspends distributions, shares fall
May 13, 2005. Units of Advanced Fiber Technologies Income Fund plunged more than 30% on Friday after the company said it was suspending its monthly cash distributions. Advanced Fiber units were down CAD 1.15 ($0.91), or 30.26%, at CAD 2.65 ($2.09) in late morning trade on the Toronto Stock Exchange, after falling as much as 39.2% to CAD 2.31 ($1.82) earlier. Volume was about 386,560, more than 4 times its 90-day average.
May 13, 2005. /Lesprom Network/. Units of Advanced Fiber Technologies Income Fund plunged more than 30% on Friday after the company said it was suspending its monthly cash distributions.
Advanced Fiber units were down CAD 1.15 ($0.91), or 30.26%, at CAD 2.65 ($2.09) in late morning trade on the Toronto Stock Exchange, after falling as much as 39.2% to CAD 2.31 ($1.82) earlier. Volume was about 386,560, more than 4 times its 90-day average.
The company, which makes pulp screen components for the pulp and paper industry, said it was at risk of breaching its lending covenants and decided to conserve cash.
Units of Advanced fiber have fallen more than 55% since it reported disappointing first-quarter profits on May 3.