Introduction and brief relative history:

Atlantic Lumber Traders is a family business company , Established in 1983 in Saint John in
Atlantic Provinces. The shareholders were Edward and Gail Hall, who were wealthy, well known,
leaders in business. They work in business for moe than half of century, with enough contacts, and
they have dealt with major banks with good reputation and goodwill. They have law study and
business beside their Lumbar work which affected both sides.(Roberts, & Hendry,1991).
80 % of sales in Atlantic Provinces, 19 5 in Quebec and Ontario and 1 % in USA.
David Lawson was the manager and share owner till 1988, and was blamed for poor performance
and he had t sell his shares with 1 dollar to the owners who admitted their weak
involvement.(Roberts, & Hendry,1991).
Financial problem identification:
Operations were profitable for 4 years, followed by loss of $219,666 & a net loss of $174,216 year
ending December 31 for $17 million of sales, which raised question mark for the bank who gave
extension of credit to 1.3 million and for the owners to get more involved in the company.
1989, the bank reduced the line of credit from $1.3 to $1 million,
So briefly the problem is liquidity loss, poor cash flow that could meet company's debt obligations
to the bank, and the evaluation done by Maritime Bank credit assistant ( Lynn) for Gail Hall's
actions. As well the recommendations to be given to save their credit.(Roberts, & Hendry,1991).

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