British Columbia lumber firm Doman Industries is suing a former lender for allegedly charging C$1m during the company’s financial crisis.
Doman, which narrowly avoided defaulting on its C$26m debt interest payment in April, claims GMAC Commercial Credit broke an agreement to give a maximum C$65m revolving line of credit, then demanded a C$1m termination fee to which the lumber firm says it was not entitled.
Doman is demanding the return of more than C$2.6m in fees and charges in the suit filed at the British Columbia Supreme Court.
