Conifex Timber Inc. (“Conifex”) has amended its lumber segment senior secured credit facility with its senior lenders to, among other things, provide additional short-term liquidity and waive certain covenants and milestones.

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Conifex Timber amends senior credit facility

Conifex Timber Inc. (“Conifex”) has amended its lumber segment senior secured credit facility with its senior lenders to, among other things, provide additional short-term liquidity and waive certain covenants and milestones. Pursuant to the terms of the amendment, Conifex is required to provide an asset divestment and restructuring plan that is acceptable to its senior lenders on or before November 25, 2019, 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 is working collaboratively with lenders and intends to present and implement an acceptable asset divestiture and restructuring plan. If Conifex does not present a plan that is acceptable to its lenders by such date, it will be an event of default under its credit agreement and unless waived, Conifex would commence consensual voluntary proceedings under applicable debtor relief laws. 

Conifex is continuing to implement and execute its divestment and restructuring plan. However, there can be no assurance that it will result in or be able to provide an acceptable plan as required by the aforesaid amendment.

Conifex and its subsidiaries' primary business currently includes timber harvesting, reforestation, forest management, sawmilling logs into lumber and wood chips, and value added lumber finishing and distribution.