The Magdalen Islands seafood processing company, which has just placed itself under the protection of the Bankruptcy and Insolvency Act, is struggling with a much more difficult financial situation than it had been estimated.
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On Saturday, the QMI Agency reported that LA Renaissance des Îles (LRDI) had a debt estimated between $3.5 million and $4 million to its 66 lobster fishermenwho have not been paid for the landings of their last two weeks of fishing of the season.
However, according to the insolvency trustee in charge of the file, LRDI has an overall debt of more than $21 million, including $16 million to its secured creditors and $5 million to its other creditors, including the fishermen.
“We are still adequately completing the list of creditors, validating inventories and receivables as well as operating expenses to establish the best cash budget possible, which must be filed within 10 days,” José wrote to us by email. Roberge, of the firm Roy Métivier Roberge, Tuesday.
The Quebec firm was mandated urgently by the president and CEO and sole shareholder of the company, Lynn Albert, last Friday, when its bank refused to release funds to pay its factory workers.
According to the trustee, Mr.me Albert is in discussions with the legal department of the financial institution to try to obtain an agreement to save the company from bankruptcy.
“We must also ensure that customers will want to pay accounts receivable and accept new deliveries without significantly reducing prices, as has been the case in recent weeks, with the significant drops in the price of lobster and crab that have resulted in significant losses on operations in a very short time,” said José Roberge.
“At this stage, we are working to avoid bankruptcy which would result in a complete loss for all creditors in addition to a significant loss for secured creditors, not to mention the major impact for fishermen, employees and customers. “, he added.
Under the Bankruptcy and Insolvency Act, LA Renaissance des Îles has an initial protection of 30 days, which takes it to Monday, September 19.