Credit crunch impacts on Davie Yards

Davie Yards? most significant client, Cecon, has informed the Canadian shipbuilder that it has received a notice of cancellation of its $200 million credit facility from DNB NOR Bank. Cecon has told Davie that it will consider and pursue new financing options and has retained First Securities and Pareto Securities as financial advisors to review its options.

Cecon has three offshore construction vessels in Davie Yards? orderbooks. The shipbuilder was forced to lay-off 1,100 workers in December 2008 while it sought financial restructuring. While the yard had expressed hope in reinstating workers this January, the news from Cecon is likely to throw its plans askew.