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Canfor Pulp Announces Asset Write-Down and Impairment Charge
Canfor Pulp faces heightened risk of breaching financial covenants due to $106 million impairment from weak global pulp prices and fibre supply challenges, management said.
- On Feb. 17, 2026, Canfor Pulp Products Inc. announced it will record a non-cash asset write-down and impairment charge of approximately $106 million in its fourth quarter of 2025 results.
- Sustained price weakness and fibre shortages drove the impairment, reflecting declines in global US-dollar pulp list prices and challenges securing economically viable fibre while advancing an Arrangement Agreement with Canfor Corporation.
- Canfor Pulp operates two mills in Prince George, British Columbia, with 480,000 tonnes and 140,000 tonnes capacity, and estimates a net debt to total capitalization ratio of 116% and EBITDA interest coverage ratio of times.
- Management has paused lender talks and says it would seek temporary relief or undertake a restructuring process if the Proposed Transaction with Canfor Corporation does not close.
- Management warns that first-quarter forecasts make covenant breaches at March 31, 2026 highly probable, citing weak pulp markets and risks in forward-looking statements and associated risks.
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Canfor Pulp announces asset write-down and impairment charge
VANCOUVER, British Columbia, Feb. 17, 2026 (GLOBE NEWSWIRE) -- Canfor Pulp Products Inc. (“the Company” or “CPPI”) (TSX: CFX) announced today that it will record a non-cash asset write down and impairment charge totaling approximately $106 million in its fourth…
·Niagara Falls, Canada
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Total News Sources6
Leaning Left4Leaning Right1Center1Last UpdatedBias Distribution67% Left
Bias Distribution
- 67% of the sources lean Left
67% Left
L 67%
C 17%
R 16%
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