The Renaissance of the Islands on the verge of bankruptcy

Everything leads us to believe that the company LA Renaissance des Îles will have to declare bankruptcy tomorrow.

According to information revealed by Radio-Canada and reconfirmed by the CFIM newsroom, the majority of the 67 fishermen concerned have already voted against the proposal made to creditors in mid-January.

The Magdalen Islands lobster fishers were grouped in a particular category of creditors and had to approve the recovery plan at 50%+1 in order for an agreement to be reached.

The whole thing must be concretized during the meeting scheduled tomorrow in Percé.

According to the trustee in charge of the file, José Roberge, there is only one scenario that would avoid a bankruptcy, that is to say that the fishermen change their minds and rally to the current proposal.

However, Mr. Roberge and the Office des pêcheurs de homard des Îles (Island Lobster Fishermen’s Association) believe that such a turnaround is unlikely since the bond of trust between the company and the lobster fishers is « completely broken ».

He added that the other unsecured creditors had largely voted in favour of the proposal.

LA Renaissance des Îles processes nearly a quarter of all seafood products landed on the archipelago and employs approximately 300 people at its peak.

Its debt is close to 20 million dollars, including 3.7 million in default of payment to fishermen.