MISSISSAUGA, Ont. – Trailmobile Canada Ltd. has completed a financing arrangement with Tyco Capital, permitting an over-advance of $2.5 million on its line of credit.

The temporary deal is mainly due to a first quarter receivable in the amount of $2.4 million. The over-advance will take effect immediately and last through April 2002.

Despite misleading media reports in other industry publications, Trailmobile Canada has not been negatively impacted by the recent U.S. Chapter 11 filing of Trailmobile Trailer LLC, which is separate from the Canadian company’s parent, Chicago-based Trailmobile Corp.

Management feels the projected increase in production as a result of the U.S. bankruptcy, coupled with a successful equity financing should be sufficient to eliminate the company’s over-advance position by the spring deadline.

One condition for the temporary over-advance includes an equity financing of approximately $3.5 million, subject to regulatory approval, which must be funded by Apr. 30.

Trailmobile Corp. has already pledged approximately $2 million of the proposed equity financing. Trailmobile Canada has also pledged as security, unencumbered collateral with an estimated fair value of $1.5 million.

“These pledged funds and conveyed collateral, have been placed in escrow as security for Tyco Capital who will in turn fund the company and allow us to bring vendor payables to within regular business terms,” says Frank Michalargias, chief financial officer for Trailmobile Canada.