The marine products processor LA Renaissance des Îles benefits from a favourable ruling by the Superior Court of Quebec and avoids the appointment of an interim receiver.
In a decision rendered on Wednesday, Judge Suzanne Hardy-Lemieux rejected the motion made by one of the company’s main creditors, the Royal Bank of Canada, which wished to protect its financial interests.
The appointment of an interim receiver could have had the effect, under conditions dictated by the Court, of giving a third party the power to control certain assets of the organization and to sell its perishable goods.
In addition, the costs and fees associated with such an appointment would have hindered the development of a viable proposal to creditors due to their impact on the company’s cash flow.
In order to avoid such a scenario, the licensed insolvency trustee in charge of the file, José Roberge, argued that the seasonal nature of the fishing industry coupled with optimistic projections suggest that a financial turnaround is possible.
Furthermore, the Royal Bank has not been able to prove that its financial interests are at risk, nor that LA Renaissance acted dishonestly in its business relations.
The marine products processor, which has filed for bankruptcy protection, owes more than $24 million to its creditors.
Of this amount, LA Renaissance has a debt of $6.6 million to the Royal Bank.