HARBOUR GRACE, NL, Nov. 17, 2023 /CNW/ – Harbour Grace Ocean Enterprises (“HGOE” or the “Company“), the marine vessel repair, refit and construction business based in Harbour Grace, Newfoundland and Labrador, announces that it obtained an Amended and Restated Initial Order (“ARIO“) from the Supreme Court of Newfoundland and Labrador (the “Court“) on November 17, 2023.
The Company initiated restructuring proceedings under the Companies’ Creditors Arrangement Act (the “CCAA“) on November 2, 2023, on which date the Court granted the Company’s application for an Initial Order. The ARIO expands on the Initial Order by notably extending the stay of proceedings to February 9, 2024 and approving the Company’s $1 million interim financing facility with its new interim financing provider, Bank of Montreal (“BMO“). The additional relief will allow HGOE to continue in operations and implement a sale and investment solicitation process (“SISP“), with a view to maximizing value for all stakeholders.
“Harbour Grace Ocean Enterprises is grateful for the support of BMO, our new interim financing partner, and the Company’s other senior secured creditor, Business Development Bank of Canada, as we achieve this significant milestone,” said Paul Lannon, General Manager and Director of HGOE. “The interim financing will allow our business to remain in operations while the SISP gets underway, with a view to maximizing value for creditors, employees, customers, suppliers, and local communities.“
HGOE’s is a major employer and economic player in the Newfoundland and Labrador marine industry, with customers and suppliers spanning multiple industries. In its decision to grant the ARIO, the Court underscored that the Company’s actions aligned harmoniously with the purpose of the CCAA, which is to facilitate restructurings, recognizing that going-concern businesses such as HGOE’s have a wide range of stakeholders.
“The fact that we are proceeding with the support of our main secured creditors, BMO and BDC, shows how compelling this business’ restructuring potential is,” said Wayne Reid, Operations Officer and Director of HGOE. “With their collaboration and the continued support of our employees, our business partners, and the Harbour Grace communities, I am confident of the Company’s ability to emerge from the SISP as a reinvigorated going‑concern business that will profitably contribute to the Newfoundland and Labrador economy for years to come.”
The Company will issue a separate press release to notify potentially interested parties of the beginning of the SISP, which will be managed and supervised by PricewaterhouseCoopers Inc., the Company’s Court‑appointed Monitor.
The ARIO and SISP Approval Order can be found on the Monitor’s website, at [https://www.pwc.com/ca/en/services/insolvency-assignments/harbourgrace.html].
SOURCE Harbour Grace Ocean Enterprises Ltd.
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