Davie shipyard assets to be liquidated

Norway’s Teco Management has failed to meet the conditions for the purchase of the struggling Davie Industries shipyard in Canada and the trustees behind the facility say it will be liquidated.

Thibault Van Houtte and Associates Ltd., the trustees of the shipyard, said in a statement that Teco did not respect agreements and failed to deposit required financial guarantees to buy the shipyard. The process to sell off the assets of the shipyard will begin again. Although disappointed the transaction fell through, the trustees praised the cooperation of the various levels of government and the Davie workers’ union during negotiations. The shipyard has been in bankruptcy since 2001. Located across the St. Lawrence River from Quebec City, it is believed to be among the oldest shipyards in Canada.

Teco Management had been given a final opportunity to negotiate sufficient financial guarantees to buy the shipyard and obtain contracts for work, the trustees have said. The shipyard employed more than 3,000 in the early 1990s.