Landsbanki Fulfills High Liner Loan
High Liner Foods said on Friday that Landsbanki, one of High Liner's three lenders under its working capital credit facility, has provided all the financing requested by the Lunenburg, Nova Scotia, seafood company.
The Icelandic bank, which was placed in receivership by the Icelandic government earlier this month, plans to continue servicing High Liner's loan.
Friday's announcement came two days after High Liner said it had sufficient credit to finance current operating requirements despite the receivership of Landsbanki.
In December 2007, High Liner entered into a CAD$120 million (US$101 million) credit facility with a syndicate of lenders, including the Royal Bank of Canada and CIT Business Credit Canada.
Landsbanki participated in the syndication of the loan by providing a revolving credit facility of CAD$40 million (US $34 million) to High Liner's U.S. subsidiary, High Liner Foods USA. Currently, less than $15 million is outstanding, including letters of credit.