March 2, 2010

Atcon Group facing possibility of receivership

FREDERICTON

One of largest employers in northern New Brunswick is facing the possibility of receivership, and taxpayers in the province could be on the hook for more than $50 million.

Lawyers for Scotiabank filed papers with Court of Queen’s Bench in Miramichi last week, seeking two orders against the Atcon Group of companies.

The bank has asked that Atcon Construction, Atcon Industrial and Envirem Technologies be given creditor protection, and it wants a receiver and manager for the rest of the Atcon companies.

The New Brunswick government has given the companies $73 million in assistance over the last few years, including $50 million in loan guarantees last June. Officials blamed the global economic downturn as the major factor affecting Atcon Group.

The company recently severed ties with the developer of a $165-million bridge project in the Northwest Territories. A portion of the loan guarantees from the province was for equipment to be used for the bridge project.

At its peak, the Atcon group employed more than 1,000 people.

Conservative house leader Paul Robichaud called it a sad day for Miramichi and other areas of northern New Brunswick that rely on Atcon jobs and spinoffs.

Governement officials said while Atcon’s business plan was examined, the needs of the community were also a factor in approving the assistance.

Canadian Press

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