Tree Island Served Default Notice
Tree Island Served Default Notice
Jason Sandefur
Tree Island Wire Income Fund received notice of default from its lenders under the GE credit facilities. The fund owns British Columbia-based Tree Island Industries, which manufactures construction fasteners and wire.
The news comes after Tree Island announced its intention to write down about $18 million in debt from the overvaluation of its inventory. The company said the overvaluation is “a result of the global economic crisis which led to an unprecedented decrease in global steel prices.’
Tree Island had previously suspended distributions to investors, along with reversing its policy on management bonuses and instituting salary restrictions while closing two California plants.
Tree Island is reportedly trying to renegotiate terms of the credit facilities with its lenders, but offered no assurances of the outcome. �2009 FastenerNews.com
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