December 5, 2019
Prendiville Industries, owner of a sawmill in Kenora, Ontario that operates under the business name Kenora Forest Products, filed an NOI on December 5, listing liabilities of approximately $28.7 million, including $13.7 million to CIBC. The company produces high quality softwood lumber that is principally exported to customers in the United States. In 2017, the US imposed softwood lumber duties on products imported from Canada. To date, the company has had to pay duties totaling approximately $9.0 million. Also in 2017, the company's two main kilns, used to dry lumber products, were destroyed in a fire, resulting in significant capital expenditures as well as lost revenues at a time when lumber prices were high. Lumber prices have since fallen and remain very depressed. Together, these factors have depleted the company's working capital. Operations have ceased and cannot resume without fresh capital. To that end, the company will initiate a sales and investment solicitation process while under creditor protection. EY is the proposal trustee. Cafa Corporate Finance is the company's financial advisor. Counsel is Thompson Dorfman Sweatman for the company, MLT Aikins for CIBC and Pitblado for BDC.