Davie Yards gets another extension of protection from creditors

Quebec shipbuilder Davie Yards says it has gotten an order extending its  stay of proceedings under Canada’s Companies’ Creditors Arrangement Act until April 1, 2011

Davie says it is making progress in its discussions with potential investors, but still needs time to conclude an exclusivity agreement with one of them. The extension will also allow Davie to continue working on its response to the request for proposals to become one of the two selected shipyards under the National Shipbuilding Procurement Strategy (“NSPS”).

Davie says it has also secured interim financing required to continue its restructuring efforts through the extension. The company has obtained confirmation that, subject to the approval of the required authorities, the Quebec Government will provide interim financing to a maximum of $1.8 million to meet the cash requirements for the duration of the extension.

 
“We truly appreciate the support of the Quebec Government”, said the President and CEO of Davie, Mr. Gustav Johan Nydal. He continued, “This support is critical to continue the process to find a solution, so the yard can eventually bring its 1500 employees back to work and get a share of the $35B federal contracts.”

The court also granted Davie an extension of the exemption to hold its shareholders’ meeting until June 30, 2011.

March 11, 2011