Canadian anger over FGH's Marystown profit
When Pieter Kiewit bought the Marystown, Canada, shipyard from bankrupt Friede Goldman Halter, sales terms were not disclosed. Now Canadian media have been looking at FGH's belatedly filed annual 10-K and found that the price was Canadian $7 million.
FGH bought the yard from the Government of Newfoundland and Labrador for just C$1. It never made good on certain commitments to maintain employment at the yard and could have paid penalties of C$10 million..But the government wrote off those penalties as it was unlikely to recover them since FGH is under the protection of U.S. bankruptcy laws.
Now government critics are angry.Tory industry critic Ed Byrne told the Canadian Press he's flabbergasted by the amount paid for the yard on Newfoundland's Burin Peninsula.
"They've taken an asset and turned it into a $5-million U.S. profit and walked away without having to pay the penalties," he said yesterday of Friede Goldman.
"Great deal, isn't it?"