High Liner Foods, Inc., the Nova Scotia-based processor of frozen seafoods and pasta, said Tuesday that they would be accepting a credit facility from BMO to guarantee that which was previously held by Iceland-based Landsbanki.

High Liner, who, without the credit facility may have been forced to declare bankruptcy, will be granted immediate effective access to the funds in order to continue operations as part of a $120 million revolving credit deal with the bank.

In December, during some level of financial crisis, High Liner accepted a similar $40 million deal with Iceland-based Landsbanki - shortly to follow, as the Icelandic economy crumbled, Landsbanki disappeared, unable to make good on its available credit. Eventually, Landsbanki did provide the funds promised.

“Our primary source of working capital are cash flows from operations and borrowings under our credit facilities. The current weakness of global credit markets and the economic downturn affecting many parts of the economy,” worried High Liner in the quarterly filings.

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