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Davie Yards Adjusts Its Operations |
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News archive -
Maritime
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Monday, 19 April 2010 05:14 |
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Davie Yards ("Davie" or the "Corporation") (TSX:DAV) announced today that the Corporation is taking further steps to preserve its working capital while restructuring its operations and financing under the Companies' Creditors Arrangement Act ("CCAA").
Davie will suspend further production activities on board the first vessel to be delivered, starting Monday, April 19, 2010. This action will affect approximately 100 employees who will be laid off temporarily, and will result in monthly cost savings of approximately $1 million. Shipbuilding activities will continue in engineering and planning departments with some additional resources. All efforts will now be concentrated to complete the restructuring process and ensure a smooth resumption of operations.
"We are still confident that Davie is going to resume normal activities", said the CEO of Davie, Mr. Gustav Johan Nydal. He continued, "Since we sought court protection on February 25, we have worked on new plans to complete the vessels, and we will focus on engineering and planning to optimize our future productivity while preserving our working capital."
Davie is having discussions with its clients and stakeholders in order to secure the financing needed to complete its five vessels under contract. Davie has also been approached by potential investors interested in participating in the restructuring of the Corporation.
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