Last Updated: Friday, October 13, 2006 | 1:46 PM ET
CBC News
The 181-year-old Davie Industries shipyard in Lvis, Que., has avoided liquidation and finally found a buyer.
Teco Management of Norway will invest $13 million to buy the facility, while the Quebec government will guarantee half of a $15.5-million loan. In exchange, Teco must employ a certain number of workers or face fines.
Back in June, the Norwegian firm said it intended to buy the shipyard, which has been in bankruptcy since 2001. However, trustees later announced the shipyard would be liquidated at the end of this month after Teco failed to meet the conditions for the purchase.
On Friday, trustee Thibault Van Houtte and Associates Ltd. said the company can now offer the necessary financial guarantees for the acquisition.
"We have spared no effort in finding a buyer capable of assuring the survival of the shipyard and the preservation of jobs," said trustee Patrice Van Houtte. "Mission accomplished."
Richard Gauvin is the president of the union that represents the workers, who have been waiting for five years for a new owner to take over the yard. He told CBC News that he is happy with the deal, but doesn't know when employees will go back to work.
Founded in 1825, the shipyard is believed to be one of the oldest in Canada. It employed more than 3,000 people in the early 1990s.
The yard passed through several owners over the years. It was owned by Dominion Bridge when it went into bankruptcy.
