Davie sale foundering

Shipyard workers at the Canadian shipbuilder Davie shipyard are increasingly worried a deal to sell the shipbuilding facility to a Norwegian company is in trouble. Richard Gauvin, said the sale of the shipyard in Levis-Lauzon, across the river from Quebec City, failed to close as scheduled for a third time yesterday.

“The longer it’s delayed, the more worrisome it becomes,” Gauvin, said. “We’re still hoping for a positive conclusion.” An agreement this spring to sell the shipyard to Teco Management Group of Norway and its smaller partner, Montreal ship-repair firm Navamar Group, staved off a liquidation of the yard’s movable assets.

Last week, Teco concluded an agreement on a new contract with Gauvin’s union after signing agreements with the shipyard’s other three unions earlier in the summer. The union and the bankruptcy trustee have also been making progress on a number of issues from the bankrupt company such as winding up outstanding grievances and pension arrangements, Gauvin said.

He said he’s concerned the new owners are running into trouble bringing in the new business they’ve lined up for the shipyard. The Teco group plans to use Davie to build five ocean-going oil rigs during the next two years worth about $150-million each.

The new owners will reportedly have to inject between $40 million and $50 million to purchase and relaunch the shipyard, which has been in receivership since 2001, the year its then-owner, Dominion Bridge, went bankrupt.