September 16, 2010
Davie Yards and Irving Shipbuilding end cooperation
Despite being in the Canadian equivalent of Chapter 11, Quebec's Davie Yards still has ambitions to become a major builder of large ships under Canada's National Shipbuilding Procurement Strategy (NSPS). A year ago, it announced a deal with Irving Shipbuilding under which the two hoped, essentially, to divvy up major federally funded shipbuilding projects between them. That cooperation has ended.
Davie Yards reports that it has has obtained an order from the Quebec Superior Court that extends its protection from creditors under the Companies' Creditors Arrangement Act. The shipbuilder says the extension will allow it "to pursue its restructuring efforts, to continue the ongoing discussions with potential industrial investors, and to develop and eventually submit a plan of arrangement to its creditors under CCAA."
Davie says it will enter the qualification process to become one of the two dedicated yards for building large ships under the NSPS.
"In order to keep all options open for potential industrial investors in Davie, and despite a good working relationship with Irving Shipbuilding," says the company, "the understanding reached last year with Irving to cooperate by sharing technology, facilities, and capabilities with respect to the NSPS, has been terminated."