Davie Yards files for creditor protectionYard News // March 2, 2010
Davie Yards in Canada has announced that the yard has filed for creditor protection under the Canadian Companies' Creditors Arrangement Act (CCAA) with the Québec Superior Court.
The yard announced that the Board of Directors has determined to seek court protection under the CCAA in order to allow Davie to work on a new plan to secure additional financing and complete its projects currently under contract.
Davie Yards is currently constructing three vessels for Cecon ASA in Norway and has indicated that delays in delivery and increased costs which may be significant for Cecon may be expected, but the actual effects for Cecon remain unclear at this time.
In a statement, Cecon said it is evaluating its position and seeking clarification of the factual situation from the yard.
Cecon remains hopeful that the yard will obtain the required additional financing. The company is currently allocating significant resources to obtain more information and will provide updates to the market as soon as information is received and evaluated by the company.