Trailmobile Canada said this temporary financing is needed due to a provision that will be charged in the first quarter of fiscal 2002 relating to $2.4 million Canadian dollars worth of receivables. The temporary financing goes into effect immediately and will be in place through April 2002. Trailmobile Corporation has guaranteed an amount equal to this advance with its revolving line of credit.
Trailmobile's U.S. sister company, Trailmobile Trailer LLC, filed for bankruptcy late last year. Trailmobile Canada Limited manufactures dry-freight trailers for commercial trucking customers in Canada and the U.S. The company is majority owned by Chicago-based Trailmobile Corp.