MIRA
INFORM REPORT
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Report Date : |
08.11.2007 |
IDENTIFICATION
DETAILS
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Name : |
TEMBEC ENTERPRISES INC. |
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Registered Office : |
800 Boul Rene Levsoue Suite 1050, Montreal, PQ, H3B 1X9 |
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Country : |
Canada |
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Date of Incorporation : |
16/08/2001 |
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Legal Form : |
Federally Chartered Corp. – Private |
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Line of Business : |
Manufacturer of a variety of paper and wood products. |
RATING &
COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Status : |
Satisfactory |
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Payment Behaviour : |
Regular |
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Litigation : |
Exists |
IDENTIFICATION & EXECUTIVE
SUMMARY
Company Name: TEMBEC
ENTERPRISES INC.
Trade Name:
Address: 800
BOUL RENE LEVSOUE SUITE 1050
City: MONTREAL
State/Province: PQ
Zip Code: H3B
1X9
Country: CANADA
Telephone: 514-871-0137
Facsimile: 514-397-0896
Founded (D/M/Y):
Legal Form: Federally
Chartered Corp. - Private
In K CAD as of :
Sales / Revenue: 2,000,000
Net Income: -
Total Equity: -
Number of Employees:
URL www.tembec.com
Shareholder:
Business Activity: The Company is manufacturer of a
variety of paper and wood products.
NOTE TO CLIENT
Person Contacted: Mr. Richard Tremblay, Controller. He verified and updated the information presented to him.
Please note that due to the Subject's recent corporate restructuring,
Mr. Tremblay could not provide an exact employment figure, however, he
did say the company has between 5000 and 6000 employees.
IMPERATIVES
Found on the Government of Canada Website:
Spruce Falls Inc., A Division of Tembec Inc., Pleaded Guilty to Charges
Under the Fisheries Act Montreal, Quebec, May 16, 2006, Spruce Falls Inc., a
division of Tembec Inc. that operates the industrial complex in Temiscaming in
Quebec, appeared yesterday before a Quebec Court judge and pleaded guilty to
charges under the Fisheries Act.
Spruce Falls Inc. pleaded guilty to having deposited a deleterious
substance (final effluent from the biological treatment system) into the Ottawa
River 16 times between April 9, 2003, and December 14, 2004, in violation of
subsection 36(3) of the Fisheries Act. In addition, the company twice failed to
monitor final effluent from the biological treatment system. Lastly, between
March 1 and June 14, 2004, Spruce Falls Inc. partially ignored a direction
issued by an inspector under 38(6) of the Fisheries Act requiring the
implementation of measures to prevent further deposits of deleterious
substances from occurring.
The $750,000 penalty that Spruce Falls Inc. was ordered to pay consists
of a $250,000 fine and a $500,000 payment to the Environmental Damages Fund,
administered by Environment Canada. The judge based the decision on a
submission submitted jointly by the Crown and the defense. Company officials
attested to the fact that an anaerobic effluent treatment system was fully
installed at the Témiscaming industrial complex and that the system has been in
operation since January 2006. The payment to the Environmental Damages Fund
will be used to promote rehabilitation projects. Local community and
environmental groups will have an opportunity to submit project proposals for
the funds. The Environmental Damages Fund ensures polluters take responsibility
for offences and gives courts a way to guarantee that money is directly invested
to improve the quality of the environment.
The charges were laid following an investigation by Environmental
Enforcement officers of Environment Canada Quebec Region. Environment Canada
investigates potential pollution offences under the Canadian Environmental
Protection Act, 1999 and Canada's Fisheries Act. They help ensure that
companies, government employees and the general public comply with legislation
and regulations that protect Canada's environment.
LEGAL
Legal Form: Federally
Chartered Corp. - Private
Incorporation State Canada
Status: ACTIVE
Since (D/M/Y): 16/08/2001
The company is NOT required to publish an annual financial report.
The Company federally chartered in Canada under the following registration.
Corporation #3934284
Corporation Name(s): Tembec Enterprises Inc./
Les Entreprises Tembec Inc.
Old Name(s) and Change Date(s)
SPRUCE FALLS INC. - 2007/01/09
Mailing Address: [Latest address on file]
Care of:
Street: 800 RENÉ-LÉVESQUE BLVD. WEST SUITE 1050
City: MONTREAL
Province: Quebec
Postal Code: H3B1X9
Country: Canada
Registered Office Address: [Latest address on file]
Care of:
Street: 800 RENÉ-LÉVESQUE BLVD. WEST SUITE 1050
City: MONTREAL
Province: Quebec
Postal Code: H3B1X9
Country: Canada
Reg. Off. Eff: 2007/01/09
Status: Active
Incorporation Date: 2001/08/16
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The Company provincially qualified in Quebec under the following registration.
Incorporation Number: 1147592696
Legal Name: LES ENTREPRISES TEMBEC INC.
Incorporation Date: 12/1/1991
Last Annual Report: 1/13/2007
Location: Canada
Address: 800 BOULEVARD RENE-LEVESQUE OUEST SUITE 1050
MONTREAL (QUEBEC) H3B 1X9
Registered Agent: TEMBEC INC.
R/A Address: 800, BOUL. RENE-LEVESQUE OUEST # 1050
MONTREAL QC
MANAGERS / KEY PERSONNEL
Mr. Jim Lopez President
Mr. Antonio Fratianni Secretary
Mr. Reginald Bastien Officer
Mr. Richard Tremblay Controller
AFFILIATED COMPANIES
Mr. Bastien stated that the Company has several affiliates. The
following is a sample of these affiliates:
Tembec Tarascon SA France
Tembec USA LLC USA
Arc Resin Corp. USA
Tembec St-Gaudens SA France
TEMBEC INVESTMENTS INC.
TEMBEC INC.
Parent Companies
Parent Company: SPRUCE
FALLS ACQUISITION CORP.
Address: 1,
MACPHERSON AVENUE
City: KAPUSKASING
State/Province: ON
Zip Code:
Country: CANADA
Ultimate Parent Company: TEMBEC
INDUSTRIES INC.
Address: 800
RENE LEVESQUE SUITE 1080
City: Montreal
State/Province: PQ
Zip Code:
Country: CANADA
The following is selected stock price and financial statement information for TEMBEC INC., (an affiliated company) which trades publicly on the Toronto Stock Exchange under the symbol TBC.
As of 4/13/2007 in Canadian Dollars
Stock Price: 0.400
52 Week High: 3.150
52 Week Low: 0.350
Shares Outstanding: 85,616,232
Fiscal Year End: 12/31/2006 in Thousands of Canadian Dollars:
Total Assets: 3,017,000
Total Liabilities: 2,429,000
Total Equity: 588,000
Net Sales: 3,411,000
Net Income: -304,000
SUBSIDIARIES
The Company has no subsidiaries.
BANKS
National Bank of Canada
City: Montreal
State/Province: PQ
Country: CANADA
Telephone: 514 331-2633
This bank only provides credit information to other banks.
*
State/Province: PQ
Country: CANADA
Tembec Inc. and the Subject currently have a joint available credit facility
of CAD 250 Million through CIT Business Credit Canada.
PAYMENT HISTORY
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Supplier's Name/Industry Terms Amount/Pay Habits/Comments
Rptd Open Credit Credit High Total Current Past Due/Pay Period
Date Date Limit Limit Dt. Credit Owing $ 1st 2nd 3rd
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Mfr-Pump & Pumping E:
*Oct 0 640 640 640 0 0 0
Personal Services:
*Oct 0 22,170 22,170 4,257 17,913 0 0
Whlsl-Industrl Paper:
*Oct 0 1,950 87 87 0 0 0
Mfr-Petroleum Prdts:
*Oct 0 738K 738K 706K 32,135 0 0
Mfr-Pump & Pumping E:
*Oct 0 703 703 703 0 0 0
Mfr-Inorganic Chemcl:
*Oct 0 335K 335K 163K 169K 0 1,521
Trucking: Merged accts
*Oct 0 16,174 16,174 8,306 7,642 0 226
Arrg Transp of Freig:
*Oct 0 32 32 20 12 0 0
Whlsl-Professnl Equp:
*Oct 0 6,265 6,265 4,832 1,390 43 0
Wholesale-Elec Appls:
*Oct 0 20,000 4,639 4,639 0 0 0
Mfr-Primary Metal:
*Oct 0 11,701 1,808 1,441 356 11 0
Whlsl-Plumbing/Heatg:
*Oct 0 138 138 0 138 0 0
DICOM EXPRESS INC.: 514-636-8033
*Sep 0 48 48 19 29 0 0
Trucking:
*Aug 0 6,498 6,498 6,393 0 0 105
------- ------- ------- ------- ------- -------
P.I. = 7 90 Days 1,160K 1,132K 901K 229K 54 1,852
Reported ------- ------- ------- ------- ------- -------
Whlsl-Ind Mach Sppls:
*Jul 0 3,107 744 0 744 0 0
Mfr-Engine:
*Jun 0 16,853 2,335 2,335 0 0 0
Mfr-Paint, Varnishes:
*May 0 450 450 0 450 0 0
Whlsl-Ind Mach Sppls:
*Apr 0 12,419 12,419 11,784 635 0 0
Transportation Serv:
*Mar 0 31 31 31 0 0 0
Business Services:
*Mar 0 7,000 6,083 6,083 0 0 0
Whlsl-Ind Mach Sppls:
*Mar 0 284 284 0 284 0 0
Whlsl-Electronic Pts:
*Feb 0 235 235 0 235 0 0
Mfr-Audio/TV Equip:
*Jan 0 200 9 9 0 0 0
Whlsl-Ind Mach Sppls:
*Jan 0 398 398 398 0 0 0
Mfr Fabricated Metal:
*Jan 0 173 173 0 173 0 0
Whlsl-Ind Mach Sppls:
*Oct 0 7,966 7,966 5,976 1,990 0 0
------- ------- ------- ------- ------- -------
P.I. = 7 Total 1,209K 1,164K 928K 234K 54 1,852
Reported ------- ------- ------- ------- ------- -------
PAYMENT TRENDS
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Payment C.I. Number of Total Current Overdue
Quarters Index Score Suppliers Owing $ 1st 2nd 3rd
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3 Qtr/2007 2 6 11 941,588 895,577 44,756 1,150 105
2 Qtr/2007 3 6 17 752,072 687,032 64,146 33 861
1 Qtr/2007 2 6 20 850,746 802,297 45,777 2,568 104
4 Qtr/2006 6 6 18 1,308K 1,057K 250,281 0 104
3 Qtr/2006 3 9 17 1,108K 1,021K 85,913 775 104
2 Qtr/2006 2 9 19 929,179 888,745 38,818 1,537 79
1 Qtr/2006 5 13 18 1,060K 922,424 125,965 592 11,491
4 Qtr/2005 5 19 19 1,177K 1,027K 107,554 42,863 71
3 Qtr/2005 3 12 17 1,111K 1,024K 82,053 3,610 807
FINANCIAL INFORMATION
Fiscal Year End : In
K CAD
Year-End (D/M/Y) 30/09/2007 30/09/2006
Income Statement Consolidated Consolidated
Global Net Sales 2,000,000 903,000
FINANCIAL INDICATORS
Mr. Tremblay stated net sales for September 30, 2007 were in the CAD 2
Billion range, however, since the Company is currently working on its 2007
financial statements, full 2007 figures are not available at this time. He did
accept a fax request to provide 2006 financial figures. If we receive a
response, we will amend the report accordingly.
Please note that the difference between the 2006 net sales figure and
the 2007 net sales figure are related to the Subject's corporate restructuring.
HISTORY
Please note that Company changed its name to TEMBEC ENTERPRISES INC.
from SPRUCE FALLS INC. in January 2007 as a result of a corporate restructuring.
CURRENT OPERATIONS
SIC Code:
NAICS Code: 32212
Paper Mills
Business Activity:
The Company is manufacturer of a variety of paper and wood products.
The Subject is split evenly between the following business operations
Pulp Mill
Saw Mill
Paperboard Converter
The Company imports and exports worldwide.
The heading address is the headquarters for the Subject. The facility
consists of leased office space.
The Company has several plant and warehousing facilities located in four
provinces: British Columbia, Manitoba, Quebec, and Ontario.
PUBLIC RECORD
A search of public revealed the following actions against the Company and no bankruptcy petitions. We could not determine the status of the actions at
this time.
Writ of Summons:
Defendant SPRUCE FALLS INC Date Oct 31, 2005
Plaintiff 9057 3692 QUEBEC INC Court Provincial Cour
Amount 42,526 Location Matane
Reason Goods Sold & Delivered File # 000643048
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Writ of Summons:
Defendant SPRUCE FALLS INC Date Apr 06, 2004
Plaintiff 9057 3692 QUEBEC INC Court Provincial Cour
Amount 42,526 Location Quebec
Reason Goods Sold & Delivered File # 028368041
COMMENTS
The Subject, federally registered in Canada in 2001, is engaged as an paperboard
converter, pulp mill and saw
mill. The payment record was generally satisfactory and the operating history is clear. Two actions were found against
the Company, however, no bankruptcy petitions were reported or noted. The Company is
responsible for normal business transactions.
RATING
EXPLANATIONS
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
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71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
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56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit
consideration. Capability to overcome financial difficulties seems
comparatively below average. |
Small |
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11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
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This score serves as a reference to assess SC’s credit risk
and to set the amount of credit to be extended. It is calculated from a
composite of weighted scores obtained from each of the major sections of this
report. The assessed factors and their relative weights (as indicated through
%) are as follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)