Author Topic: Davie yard acquired by Upper lakes shipyard  (Read 5592 times)

Offline Les bateaux du Qu

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Davie yard acquired by Upper lakes shipyard
« on: July 21, 2011, 09:07:51 PM »
Today is a big day for Davie shipyard of Levis. The was acquired by Upper Lakes shipbuilding of St-Catherine, Ontario, today and at the same time, giving them a double opportunity to bid on gouvernment  35G$ contracts for fleet renewal. Davie yard is now safe from bankruptcy ans will be able to continue their activities. 
Let's hope this time everything will work for them!

Offline Steve Geronazzo

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Re: Davie yard acquired by Upper lakes shipyard
« Reply #1 on: July 22, 2011, 12:36:35 AM »
Things happened really quickly. The sale was confirmed early this morning and it is confirmed that they submitted their bid to the Federal Government by 10h30 AM and the deadline was 2 PM!

They surely had things planned way before today but kept it secret.

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Offline Steve Geronazzo

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Re: Davie yard acquired by Upper lakes shipyard
« Reply #2 on: October 19, 2011, 10:46:07 PM »
The Canadian Government decided to give the 35 billion $ to two companies. The Halifax shipyard will receive the contracts to build military ships for a total of 28 billion $. The Vancouver shipyard will receive the contract to build ships for the Canadian Coast Guard for a total 0f 8 billion $. The Davie shipyard in L
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Offline Les bateaux du Qu

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Re: Davie yard acquired by Upper lakes shipyard
« Reply #3 on: October 20, 2011, 12:45:26 AM »
It's a sad new for Davie because there was a lot of hope in those contract to re-start the yard for many years.  But I realise something, maybe for now those contract are over for Davie, but over the next few years, there will probably be other contracts. When we look at what ship are involved in these contract, only one icebreaker is going to be built (Polar icebreaker ccgs John G. Diefenbaker, but in fact, the coast guard fleet is aging and they will have to think about replacing few icebreakers in couple years:CCGS Tracy is aging (it was all refit last year to extend is life for another 10 years). CCGS Pierre Radisson, Amundsen and DesGroseillier are about 30 years old, Terry Fox is set for replacement in 2020 and so on with other vessel all built in early 80's. So I think there is hope for Davie in the next couple years, if at least they can survived until then.
Daniel
Quebec

Offline Magogman

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Re: Davie yard acquired by Upper lakes shipyard
« Reply #4 on: October 20, 2011, 01:22:53 AM »
Is/was Upper Lakes shipbuilding part of or related to Upper Lakes shipping which was merged into Algoma Central this year?
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Offline Steve Geronazzo

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Re: Davie yard acquired by Upper lakes shipyard
« Reply #5 on: October 20, 2011, 12:17:20 PM »
Yes. There was a consortiom put together to be able to qualify for the Federal contrats. Who knows now what will happen now that no contracts were given to the Davie.
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Offline Mac Mackay

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Re: Davie yard acquired by Upper lakes shipyard
« Reply #6 on: October 21, 2011, 12:57:02 AM »
Is/was Upper Lakes shipbuilding part of or related to Upper Lakes shipping which was merged into Algoma Central this year?

Upper Lakes Group sold its lake ships to Algoma. ULG was NOT merged into Algoma. ULG is a free standing company involved in grain sales and movement, and real estate. It also owns the shipyard in St. Catharines (Seaway Industrial & Marine, formerly Port Weller Dry Dock) and associated companies in ship repair and industrial work.
In partnership with SNC Lavalin, ULG bought the Davie Quebec yard. The yard is in creditor protection until the end of October, at which time the courts will decide on how its creditors will make out.
The contracts for under 1,000 tonnes displacement ships that were not included in the new federal ship building contracts will be open to all yards to bid on. Davie would have to win those bids competitively, unless another procurement process is initiated. They already have three ships for Cecon to finish and two ferries for the Province of Quebec, and possibly some repair/refit work to do.
There are several ships of over 1,000 tonnes displacement that must be replaced as Steve says, and no announcement has been made on exactly how that will be done.
« Last Edit: October 21, 2011, 01:09:39 AM by Mac Mackay »

Offline Mac Mackay

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Re: Davie yard acquired by Upper lakes shipyard
« Reply #7 on: October 28, 2011, 01:19:23 AM »
The proven creditors have voted to accept .05 cents on the dollar as final settlement of the outstanding obligations of the yard. In other words, $1 million will be handed over to creditors to satisfy $200 million dollars of debt.
Unfortunately two other creditors have decided to contest the agreement and will go to court at the end of November to make their case.
Until then the yard is not saved from bankruptcy. The two creditors could force the sale of the yard piecemeal, thus ruining the present plan to bring the yard back to life.
According to the court appointed monitor's report, those outstanding claims were made by Ocean Hotels and Mecanarc.Ocean Hotels is the company that ordered the tow vessels under construciton at the yard. Mecanarc is a local metal fabricator.
The monitor stated in his latest report that the break-up value of the yard would be even less than the .05% settlement offer.
One has to wonder what will be gained by pressing these claims.

Offline esima001

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Re: Davie yard acquired by Upper lakes shipyard
« Reply #8 on: October 28, 2011, 09:50:35 AM »
Hi Mac,

This is the old company Davie Yards that can go bankrupt. The new owner Chantier Davie Canada inc has nothing to do with the possibility of bankrupt. They paid 1 million to Davie yards creditor to acquired the shipyards facilities. So the debts remains to Davie Yards and they are currently closing this company.
............

Offline Mac Mackay

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Re: Davie yard acquired by Upper lakes shipyard
« Reply #9 on: October 28, 2011, 01:50:08 PM »
Merci Alex
You are correct. The OLD Davie is now renamed 4370422 Canada Inc. It has few assets, except the property which is mortgaged beyond its value. If it is declared bankrupt there will be little effect on the new yard.
The NEW Davie is 7731299 Canada Inc,and owns substantially all the assets of the old yard.
My concern is that if the OLD yard goes bankrupt the property/land on which it sits may be effected. What do you think?
« Last Edit: October 28, 2011, 01:55:20 PM by Mac Mackay »

 

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