Financially strapped Iles-de-la-Madeleine-based seafood processor LA Renaissance des Îles (LRDI) presented its proposal to creditors at the Supreme Court this week and is now hoping to “start a season again”.
The company, which filed for bankruptcy and bankruptcy protection last year, has $20 million in debt. In its proposal, presented on Monday, it commits to repaying 100% of its debts to its current and former employees and providing its other unsecured creditors, including fishermen, a lump sum repayment of $5 million over seven years.
However, the proposal to avoid bankruptcy of LRDI is subject to several conditions, including its acceptance by the statutory majority of approximately 360 creditors and its approval by the court. The company must also obtain approval to reorganize its share capital and obtain its operating licenses.
The creditors’ meeting of LRDI, which provided employment to 300 workers last year, will be held in Percé on February 9 or via video conference.
The restructuring, which will allow it to resume operations, will also require financial support from the government and a financial institution.
“Woman [Lynn] Albert [la propriétaire] and its investor are not asking for help in paying off creditors, but for intervention to resume a season in a market that is still very fragile, particularly the crab market, explained us the trustee José Roberge of the company Roy, Métivier, Roberge . It is that the fishermen are demanding to be paid within 7 days, which is impossible without government support when we know that the company wants to sell with Canadian and American traders whose payment is within 90 days.
A spark of hope
The Québec government’s door is not closed to help to help save the company.
“We hope this processor can continue operating,” said Quebec Minister of Agriculture, Fisheries and Food André Lamontagne, who says he is following the filing 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 at our disposal to ensure the continuity of operations. Of course, we are ready to examine possible scenarios, mainly with Investissement Québec.