McCoy secures $1 million loan

Truck News

EDMONTON, Alta. – McCoy Bros. Inc. has snapped up a $1-million loan from its majority shareholder, the second such cash infusion from Foundation Equity Corp. in four months.

“We had a difficult year,” said David Dominy, McCoy CEO. The Edmonton-based truck parts firm will release its 1999 financial results in May. In its third quarter of 1999, it suffered a net loss of more than $300,000.

“The same things affect us that affect the oilpatch,” Dominy explained. McCoy makes and services things like truck springs, axles, trailers and oilfield products. International oil prices began falling in late 1997 and reached rock-bottom in December 1998. McCoy had planned a rights offering but called it off at the end of January. Foundation, an Edmonton investment house with 56 per cent of McCoy’s shares, loaned $890,000 in December. That loan, like the new $1-million loan, is convertible to McCoy equity before the maturity date of March 28, 2002.

McCoy now has a staff of 500, following layoffs during the rough period, Dominy said, but McCoy has also purchased companies that brought in new employees.

McCoy, which trades on the TSE, has nine facilities in Alberta (three in Edmonton) and others in Prince Albert, Sask., and Rancho Cucamonga, Calif. n

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