finetrader Posted December 9, 2013 Share Posted December 9, 2013 Hey guys, Is anyone knows who own the 25M$ 7% 2017 private convertible debenture? Thanks so much! Link to comment Share on other sites More sharing options...
triedtestedand Posted December 9, 2013 Share Posted December 9, 2013 For once ... under-promise, over-deliver. What?! Did something go better than expected?! Link to comment Share on other sites More sharing options...
Liberty Posted December 9, 2013 Author Share Posted December 9, 2013 For once ... under-promise, over-deliver. What?! Did something go better than expected?! One way to interpret this -- can't know if it's right -- is that the problems show the old operating guy's skills, and the fixing shows Yvon's skills. Hoping that's proven right over time. Link to comment Share on other sites More sharing options...
alertmeipp Posted December 10, 2013 Share Posted December 10, 2013 VANCOUVER, BRITISH COLUMBIA--(Marketwired - Dec. 9, 2013) - Fortress Paper Ltd. ("Fortress Paper" or the "Company") (TSX:FTP) announced today that three of the four digesters at the Fortress Specialty Mill (the "FSC Mill") in Thurso, Quebec resumed operation today after being shut down since December 5, 2013 to complete required and preventative repairs to piping. Accordingly, the FSC Mill has resumed production and is ramping up operation of the cogeneration facility. The Company anticipates the fourth digester will be operational on December 11, 2013. Yvon Pelletier, President of Fortress Specialty Cellulose Inc., commented: "While this operational technical setback was beyond our control and unfortunate, I am very proud of our team who were able to expeditiously rectify the issue. As a result of their diligent efforts, we have resumed production at the FSC Mill with limited downtime." What?! Did something go better than expected?! I think they are becoming more conservative on their guidance. Not a bad thing. Link to comment Share on other sites More sharing options...
lessthaniv Posted December 10, 2013 Share Posted December 10, 2013 Hey guys, Is anyone knows who own the 25M$ 7% 2017 private convertible debenture? Thanks so much! http://www.paperage.com/2012news/01_31_2012fortress_paper.html It is part of the LSQ financing: Fortress Paper has also signed a subscription agreement with a Quebec financial institution providing for the subscription of an unsecured convertible debenture of Fortress Paper (the "Debenture") in the aggregate principal amount of $25 million maturing in five years with an interest rate of 7% per annum. The Quebec financial institution will have the option to convert its Debenture, in whole or in part, into common shares of Fortress Paper at any time after closing of the APA at a conversion price equal to the volume weighted average price of the common shares of the Corporation on the Toronto Stock Exchange (the "TSX") for the five trading days immediately preceding the closing of the APA plus a premium equal to 50% of such trading price. The Debenture will be redeemable, in whole or in part, at the option of Fortress Paper, from the second anniversary date of its issuance at par plus all accrued and unpaid interest, provided that the volume weighted average trading price of the common shares of Fortress Paper on the TSX is not less than 125% of the conversion price. The Debenture financing is subject to various conditions, including the concurrent completion of the IQ financing, the closing of the APA and receipt of the requisite TSX approval. Link to comment Share on other sites More sharing options...
finetrader Posted December 10, 2013 Share Posted December 10, 2013 Thank you lessthaniv! I believe the holder of those debentures is FTQ funds. http://www.globalpapermoney.com/fonds-de-solidarit-ftq-invests-cad-25-million-in-fortress-paper-cms-6275 Link to comment Share on other sites More sharing options...
alertmeipp Posted December 10, 2013 Share Posted December 10, 2013 This got to be the most active and unprofitable thread of all-time in this board. Hope the next 188 pages bring tremendous profit to all involved. ;) Link to comment Share on other sites More sharing options...
colinwalt Posted December 10, 2013 Share Posted December 10, 2013 This got to be the most active and unprofitable thread of all-time in this board. Hope the next 188 pages bring tremendous profit to all involved. ;) Or a very expensive + painful lesson ;-) Link to comment Share on other sites More sharing options...
obtuse_investor Posted December 12, 2013 Share Posted December 12, 2013 This got to be the most active and unprofitable thread of all-time in this board. Hope the next 188 pages bring tremendous profit to all involved. ;) Ha! I think that record is likely held by the BBRY/RIM thread :) Link to comment Share on other sites More sharing options...
alertmeipp Posted December 14, 2013 Share Posted December 14, 2013 This got to be the most active and unprofitable thread of all-time in this board. Hope the next 188 pages bring tremendous profit to all involved. ;) Ha! I think that record is likely held by the BBRY/RIM thread :) Hope it stays that way. No insider buy seen yet. A insider sell to cover option exercise expense tho. Cotton price up some from recent bottom, hope the trend continue. Will take any positive development.:) Link to comment Share on other sites More sharing options...
obtuse_investor Posted December 16, 2013 Share Posted December 16, 2013 ECB LAUNCHES ONLINE COMPETITION RELATED TO NEW €10 BANKNOTE http://www.new-euro-banknotes.eu/News-Events/Press/PRESS-RELEASES-PRESS-KITS/ECB-LAUNCHES-ONLINE-COMPETITION-RELATED-TO-NEW-%E2%82%AC10-BANKNOTE Link to comment Share on other sites More sharing options...
Parsad Posted December 17, 2013 Share Posted December 17, 2013 Fortress to Close Thurso Mill For 10 Weeks: http://www.bloomberg.com/news/2013-12-17/fortress-paper-to-temporarily-shut-quebec-pulp-mill.html?cmpid=yhoo http://finance.yahoo.com/news/fortress-paper-dissolving-pulp-mill-223800159.html Cheers! Link to comment Share on other sites More sharing options...
jeffmori7 Posted December 17, 2013 Share Posted December 17, 2013 Ouch...Had not seen this one coming... And this is sad for the workers, just before Christmas. Link to comment Share on other sites More sharing options...
Myth465 Posted December 18, 2013 Share Posted December 18, 2013 This may turn out to be a total loss.. Link to comment Share on other sites More sharing options...
ECCO Posted December 18, 2013 Share Posted December 18, 2013 They expect to reduce their lost by doing that, that was the thing to do, no? they are buying time now. I agree, that is sad for the staff. Link to comment Share on other sites More sharing options...
Parsad Posted December 18, 2013 Share Posted December 18, 2013 They expect to reduce their lost by doing that, that was the thing to do, no? they are buying time now. I agree, that is sad for the staff. Yes, sad for the workers. But better a temporary layoff than a permanent one. This will reduce the cash burn temporarily. Not sure what will happen to DP prices in 10 weeks or the tariffs, but it's better than sitting on excess pulp inventory and burning cash. Cheers! Link to comment Share on other sites More sharing options...
alertmeipp Posted December 18, 2013 Share Posted December 18, 2013 More color: http://www.brandonsun.com/business/breaking-news/fortress-paper-to-idle-quebec-pulp-plant-for-10-weeks-just-ahead-of-christmas-236291991.html?thx=y Fortress Paper to idle Quebec pulp plant for 10 weeks just ahead of Christmas By: Ross Marowits, The Canadian Press Tuesday, Dec. 17, 2013 at 5:40 PM | Comments: 0 PRINT E–MAIL REPORT ERROR MONTREAL - Fortress Paper will lay off more than half the staff at its plant in Thurso, Que., some 200 people, just days before Christmas as the company takes a 10-week shutdown because of weak market conditions and the recent imposition of interim dumping duties by China. The Vancouver-based company said the duty on so-called dissolving pulp used primarily to make clothing makes it "uneconomical" for the plant to operate and producing paper pulp isn't currently viable because of low prices. Chief executive Chadwick Wasilenkoff said the company will use the 10 weeks to reduce the cost structure of the mill so it can absorb the Chinese duty, which currently stands at 13 per cent. The amount of the duty is based on calculations of operating costs. He said Fortress is stuck because Chinese customers want to pay the price excluding the duty but lowering the price would constitute dumping under World Trade Organization rules. "We are working on all sides to get our cost structure down so that we could be able to absorb a 13 per cent discount below current trough pricing in order to not be dumping," Wasilenkoff told The Canadian Press from Vancouver. He said the conversion to dissolving pulp was rushed. While costs have occasionally been good, they have averaged high because of ongoing inefficiencies. "It's time to take a large step back, a couple of large deep breaths, really put the proper procedures and process in play and when we restart the mill we expect to have a step change from all sides to ensure that we improve the reliability of the mill," he said after markets closed. About 200 employees will be off work after completing their shifts on Friday. Another 150 will remain on the job to work on various cost initiatives and to run the plant's co-generation facility that will heat the plant during the shutdown. Fortress (TSX:FTP) expects the shutdown will last 10 weeks but may be shortened or lengthened as required. Employees are encouraged to take holidays during the closure, which will reduce or eliminate the scheduled one-week maintenance shutdown in June. The cost-reduction efforts are not expected to result in permanent workforce reductions. The CEO lamented the timing of the shutdown but said the company had no choice but to reduce its spending. "While business is business, I have to admit that Christmas and the timing weighed quite heavily on us," he said. Fortress announced the temporary closure on Tuesday, about a month after it warned that dumping duties imposed by China would pose serious long-term problems for the sector. Wasilenkoff said he remains confident that a final dumping duty — expected to be announced in February or even before Chinese New Year at the end of January — will recognize the error in calculating Fortress' costs, including the temporary impact from starting the cogen operations. "We remain confident that it will be reduced but to what extent or would it fully get eliminated — obviously too early to tell. We feel there should be no duty." The temporary shutdown of Thurso's operations is just the latest challenge facing the company, which has struggled with the startup of the cogen facility. "No one is looking forward to getting this year behind us more than myself," said Wasilenkoff. "It has been a very challenging, frustrating." On the Toronto Stock Exchange, Fortress Paper's shares closed up 15 cents, or 3.7 per cent, at $4.20 on Tuesday. Link to comment Share on other sites More sharing options...
alertmeipp Posted December 18, 2013 Share Posted December 18, 2013 Yet another strike! Just thought we will be off for a new start. While temporary shutdown is not uncommon for sectors that are over-capacity and there SHOULD not be any permanent layoff, it is still just too cruel for those 200 ppl, their income will stop right before Xmas and New Year. From the business perspective, burning less cash and lower the future cost is not a bad thing. The Dec EBITDA neutral goal is likely out of the windows now but I will take the lowest burn. This probably will help their negotiation with their customers and get some attention from the government to help their case with the dumping as well. I guess the swing mill idea is good on paper only, skepticism from various board members is well-placed. It's interesting that Chad is still confident about the duties get reduced or eliminated because of calculation error. Hope we have a better 2014. Link to comment Share on other sites More sharing options...
alertmeipp Posted December 18, 2013 Share Posted December 18, 2013 They expect to reduce their lost by doing that, that was the thing to do, no? they are buying time now. I agree, that is sad for the staff. Yes, sad for the workers. But better a temporary layoff than a permanent one. This will reduce the cash burn temporarily. Not sure what will happen to DP prices in 10 weeks or the tariffs, but it's better than sitting on excess pulp inventory and burning cash. Cheers! Sanjeev, it sounds like you are in finally? Or did I mis-read? Link to comment Share on other sites More sharing options...
Liberty Posted December 18, 2013 Author Share Posted December 18, 2013 Never a dull moment.. :P At least the cogen is still running and bringing cash in (imagine if it still wasn't operational...). And focusing on cutting costs and improving efficiency can't hurt and might be easier/faster to do when they're not producing DP at the same time. But what will the next surprise be? If we ever have a positive surprise, I'll probably fall off my chair... Link to comment Share on other sites More sharing options...
phil_Buffett Posted December 18, 2013 Share Posted December 18, 2013 down 11% :o Link to comment Share on other sites More sharing options...
Liberty Posted December 18, 2013 Author Share Posted December 18, 2013 down 11% :o Back where it was Monday morning. Could've been worse. Link to comment Share on other sites More sharing options...
alertmeipp Posted December 18, 2013 Share Posted December 18, 2013 I added more today. It is becoming a very significant position. Just like the risk and reward here. Link to comment Share on other sites More sharing options...
alertmeipp Posted December 18, 2013 Share Posted December 18, 2013 down 11% :o Back where it was Monday morning. Could've been worse. But it stops the run up. I think 2014 will be a turnaround year. But liberty, u know better. Link to comment Share on other sites More sharing options...
Liberty Posted December 18, 2013 Author Share Posted December 18, 2013 But it stops the run up. I think 2014 will be a turnaround year. But liberty, u know better. I don't know anything anymore. I'm just watching and waiting at this point. Risk/reward looks good to me too, but who knows? Link to comment Share on other sites More sharing options...
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