February 8, 2023
Forex Inc., Forex Amos Inc. and Wawa OSB Inc. (collectively, the "Forex Group"), a family-owned business and leader in Quebec's forestry industry, specializing in the manufacture of construction material, including lumber, Oriented Strand Board ("OSB") and other milled wood products, obtained CCAA protection on February 8. Following an unprecedented peak in the price of OSB and lumber in 2021 and throughout the first half of 2022, the Forex Group used its profits to repay its secured debt and invest in assets. However, a decline in market conditions has since resulted in a drastic deterioration of the Forex Group’s financial situation, which has been aggravated by an ongoing dispute with certain shareholders. As a result of the dispute, Forex has been unable to effectively convene and act through its board of directors since August 2022. This has impaired management’s ability to make decisions on future projects and hampered its ability to face market headwinds, including the sharp decline in OSB and lumber prices during the last half of 2022, which have resulted in significant losses and strain on the Forex Group’s cash flow. The Forex Group has also encountered difficulties in securing new financing. PwC was appointed Monitor. Stikeman Elliott is counsel for the Forex Group, Norton Rose Fulbright is counsel for the Monitor and Miller Thomson is counsel for Les Placements Al-Vi Inc., the interim lender.
By Dina Milivojevic