The Magdalen Islands seafood processor, which has just placed itself under the protection of the Bankruptcy and Insolvency Act, is struggling in a far more difficult financial situation than previously thought.
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On Saturday, the QMI agency reported that LA Renaissance des Îles (LRDI) owed between $3.5 million and $4 million to its 66 lobster fishermen who were unpaid for landings during the last two fishing weeks of the season.
However, according to the liquidator on the filing, LRDI has total debt of more than $21 million, including $16 million to its secured creditors and $5 million to its other creditors, including Fishermen.
“We are still in the process of adequately completing the list of creditors, validating inventories and accounts receivable, and operating expenses to create the best possible cash budget, to be submitted within 10 days,” José Roberge of Roy Métivier wrote to us via email Roberto, Tuesday.
The Quebec firm received an urgent mandate from the company’s President and CEO and sole shareholder Lynn Albert last Friday when its bank refused to release funds to pay its factory workers.
According to trustee Mr.me Albert is in talks with the financial institution’s legal department to try and reach a settlement to save the company from bankruptcy.
“We also need to make sure that customers want to pay claims and accept new supplies without dropping prices significantly, as has been the case in recent weeks when lobster and crab prices have dropped significantly, resulting in significant operating losses in a very short period of time.” time,” said José Roberge.
“At this stage we are working to avoid a bankruptcy that would result in a total loss for all creditors, in addition to a significant loss for secured creditors, not to mention the major impact on fishermen, employees and customers,” he added added.
Under the Bankruptcy and Insolvency Act, LA Renaissance des Îles has an initial protection of 30 days, which lasts until Monday September 19th.