Dawson Lumber Company Limited
Objective
National Bank of Canada ("NBC" or "the Bank") is tasked with the decision to review Dawson Lumber Company Limited's ("Dawson") request for an increase in its line of credit up to the amount of $10.8mm. Dawson intends to finance inventory and receivables with the line of credit. NBC must remain cognizant of the competitive landscape of the lumber industry and assess whether a focus on the retail segment is beneficial to Dawson's strategic plan. Given that Dawson is one of the region's largest borrowers, NBC must be careful in how it manages this relationship. The Bank cannot afford to turn away NBC's business. However, extending Dawson additional credit may increase Dawson's default risk and jeopardize the potential for NBC to retrieve the $4.2mm term loan it is already owed.
Industry Analysis
Canadian Lumber Industry Analysis
The Canadian lumber industry can be seen as very unattractive at best. Expected oversupply of Canadian lumber, increased competition in......
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Approximate Word Count: 1515
Approximate Pages: 7 (250 words per double-spaced page)
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Dawson Lumber Company Limited
Dawson Lumber Company Limited. Objective National Bank of Canada ("NBC"
or "the Bank") is tasked with the decision to review Dawson ...
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