March 25, 2010

Judge gives time for Atcon reorganization

MIRAMICHI, N.B.

A New Brunswick judge is giving the owner of the Atcon Group of companies another week to find a plan to save his steel fabrication company — Atcon Industrial — from collapse.

Owner Robbie Tozer says he’s confident a plan can be found, but he needs time.

Court of Queen’s Bench Justice Thomas Riordon says he’s pleased with the co-operation between Tozer, a court-appointed monitor and creditors.

Earlier this month, seven of the companies were placed under creditor protection, while another five were put into receivership.

Atcon owes its creditors about $250 million, and the provincial government has invested $72.5 million in the companies in recent years, including $50 million in loan guarantees last summer.

Officials with the Department of Business New Brunswick confirm the province paid the $50 million to the bank last week.

The judge has approved the sale of Atcon’s Fredericton-based environmental company Envirem, but the sale price is not being made public.

Envirem was for sale prior to March 1 when Scotiabank called in its loans.

The status of all the Atcon companies will be discussed when the case returns to court on March 30.

Canadian Press

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