Business
Superior Plus Initiates Comprehensive Strategic Review
Superior Plus Initiates Comprehensive Strategic Review.
About this update from Superior Plus Corp
[{"type":"text","content":"\n\n\n\n\n- Special Committee of the Board formed to conduct a Strategic Review\n to maximize unitholder value\n- Monthly cash distribution reduced to $0.13 per trust unit\n- Unitholder Rights Plan approved by Board\n\nTSX: SPF.UN\n\nCALGARY, April 24 /CNW/ - Superior Plus Income Fund (the \"Fund\") and\nSuperior Plus Inc. (\"Superior\") announced today that they have initiated a\ncomprehensive strategic review process, intended to maximize unitholder value.\nThe strategic review has been launched due to anticipated weakness in the\noperating results of ERCO Worldwide over the medium term, one of the principal\nbusinesses of the Fund, following the recent completion of an intensive review\nof ERCO's operations and outlook, as well as due to the reduction of the\nFund's monthly distribution, and the recent weakness in the Fund's unit price.\nThe strategic review process will include consideration of all feasible\nalternatives to maximize unitholder value. In commenting on the process, Grant\nBilling, Executive Chairman of Superior, stated: \"While we see significant\nchallenges for ERCO Worldwide over the medium term, Winroc our wall and\nceiling products distributor is continuing to grow with numerous opportunities\nto expand. JW Aluminum is experiencing strong markets and Superior Energy\nManagement, our natural gas retailing business, is growing. Superior Propane\nhas had significantly weaker results recently due to very warm weather but has\nbegun to execute on its plan to improve its profitability. All of these\nbusinesses, including ERCO, have valuable franchises and we intend to\nundertake our review in a deliberate manner. In the interim, we need to\nrecognize our current operating realities, which include the impact of the\nstrong Canadian dollar, high energy prices, near term weakness in Superior\nPropane's results and the anticipated weakness in ERCO, while our current\nliquidity and financial position remain sound.\"\nSuperior has $425 million in committed revolving bank facilities of which\napproximately $150 million is currently undrawn and available and is\nconsidered to be sufficient to meet Superior's net working capital funding\nrequirements and expected growth capital expenditures. Superior's senior debt\ncovenants restrict its ability to make distributions to the Fund and incur\nadditional long-term indebtedne...