CLARENVILLE, N.L. — Burry’s Shipyard has filed for protection under the Bankruptcy and Insolvency Act.
The Clarenville business filed a notice of intention (NOI) to make a proposal under subsection 50.4(1) of the BIA on July 10.
Deloitte Restructuring Inc. were appointed as the licensed insolvency trustee.
According to a statement on Deloitte's website to the creditors of the shipyard, the effect of the NOI filing is an automatic stay of proceedings against all creditors from commencing any actions against Burry’s.
In an emailed statement to The Packet, Burry Group president Glenn Burry confirmed the motion.
“Due to the circumstances, and events which you are already aware of, Burry’s Shipyard Inc. has filed for protection under Div. 1 of BIA to seek time to restructure the affairs of the business,” read the email.
The Shipyard issued a mass layoff this summer as a result of having the work contract with the provincial government for the M.V. Gallipoli cancelled. The province’s decision to move the work to St. John’s came after the Clarenville shipyard’s slipway was damaged in February.
However, the slipway was fixed and operational before the ship had even left Clarenville for Newdock in St. John’s.
RELATED:
• ‘We were left with no other choice’: Province cancels Gallipoli refit with Clarenville Shipyard
• Burry’s Shipyard president calls Gallipoli cancellation detrimental to business
“There isn’t much I can say other than this is a detrimental blow to us and this area, and I wish we didn’t have to report this,” said Burry in his email.
The online statement says Burry’s Shipyard has 30 days from July 10 to either make a proposal to its creditors or to seek an extension from the Supreme Court of Newfoundland and Labrador.
In its list of creditors with claims of $250 or more, the total amount of money owed by Burry’s is $4,878,300.71.
Twitter: @jejparsons
The headline of this story was changed to more accurately reflect the proceedings between Burry's and Deloitte.
