Financially troubled Iles-de-la-Madeleine seafood processor LA Renaissance des Îles (LRDI) submitted its proposal to creditors in Superior Court this week and now hopes to “start a season again.”
The company, which filed for bankruptcy and insolvency protection last year, has liabilities of $20 million. In its proposal presented Monday, it undertakes to reimburse 100% of its debt to its current and former employees, and to spread over seven years a lump sum reimbursement of $ 5 million for its other unsecured creditors, including the fishermen.
The proposal to avoid LRDI’s bankruptcy is however subject to multiple conditions, including its acceptance by the statutory majority of some 360 creditors and its approval by the court. The company must also obtain authorization to proceed with a restructuring of its share capital, as well as preserve its operating permits.
The meeting of creditors of LRDI, which provided employment for 300 workers last year, will be held in Percé or by videoconference on February 9.
The restructuring, which will enable it to relaunch its operations, will also require financial assistance from the government and a financial institution.
“Mrs [Lynn] albert [la propriétaire] and its investor are not asking for help to settle the creditors, but for intervention to restart a season in a still very fragile market, especially that of crab, explained to us the trustee José Roberge, of the firm Roy, Métivier, Roberge . It is that the fishermen ask to be paid within seven days, which is impossible without government assistance when we know that the company wants to sell with Canadian and American distributors whose payment is made within 90 days.
Glimmer of hope
At the Government of Quebec, the door is not closed for assistance intended to participate in the rescue of the company.
“We hope that this processor can continue to operate, said the Minister of Agriculture, Fisheries and Food of Quebec, André Lamontagne, who says he is following the file very closely. And we will see, depending on the scenarios that will emerge from all the negotiations of the last few months, how the government can intervene, with the levers we have, to ensure continuity of operations. Of course, we are willing, mainly with Investissement Québec, to explore possible scenarios.