Vancouver, British Columbia, July 10, 2019 - Fortress Global Enterprises Inc. ("Fortress" or the "Company") is pleased to announce that its wholly owned subsidiary, Fortress Bioenergy Ltd. ("FBL"), has received from its senior lender, IAM Infrastructure Private Debt Fund LP ("IAM"), $3.4 million in restricted cash previously held in a debt service reserve account.
These funds will be used to secure additional wood fibre inventory for the Fortress Specialty Cellulose mill (the "FSC Mill"). FBL is required to replenish the reserve account with three months of blended principal and interest payments (approximately $1.2 million) by June 30, 2020.
Giovanni Iadeluca, President and Chief Executive Officer of Fortress, commented: "The proceeds of the released funds from IAM is integral to the FSC Mill building wood fibre inventory and increases the overall working capital available. We are grateful to IAM for their continued support. This release of restricted cash supplements the previously announced multi-year moratorium on Fortress' loan with Investissement Québec. Together, these initiatives provide Fortress with enhanced liquidity and improved financial flexibility."
Fortress operates its dissolving pulp business at the FSC Mill in Thurso, Québec, which also operates in the renewable energy generation sector through its cogeneration facility. Fortress operates its bioproducts business through Fortress Advanced Bioproducts Inc., which has laboratory and pilot plant facilities in Vancouver, British Columbia.