Doman to defer coupon payment, consider restructuring

New York, Sept. 10 - Doman Industries Ltd. said it will defer its upcoming coupon payment on its 9.75% senior unsecured notes due 2004 and added that it is looking at the possibility of restructuring its balance sheet.

The Duncan, B.C. timber company said it will use the 30-day grace period for the interest payment due Sept. 15 on its $388 million of 8.75% notes.

Doman added that in light of the current uncertainties affecting its industry, including the softwood lumber tariff trade dispute, its board has concluded that the company should explore a possible restructuring of its balance sheet.

A special committee of independent directors has been formed to oversee the process.

Doman has hired UBS Warburg as financial advisor.

"The Company believes it is making good progress in developing a restructuring plan that will be in the interest of all stakeholders," Doman said in a news release although it added that it cannot give an assurance it will be successful.

Among the issues currently being considered is whether making the interest payment is "the best use of the Company's cash resources," Doman added.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.