Canadian boat manufacturer Doral Marine International, Grand-Mere, QC, filed a Notice of Intention (NOI) on April 24 to make a proposal under the Bankruptcy and Insolvency Act.
"Doral has filed a Notice Of Intention to file proposals to its creditors,' explains Jean Gagnon, Partner at Raymond Chabot Grant Thornton (RCGT) the Montreal-based trustee handling Doral's filing. "It's under the bankruptcy law but it is not a bankruptcy. The company is not bankrupt right now. They are still alive during this process and have hired us to solicit any offers to purchase the assets or to invest money into the company. Filing for bankruptcy means a company is completely closed and there is no option other than selling the assets. In this case, Doral is not in bankruptcy and can potentially have up to six months to make an offer to its creditors, which would allow the company to survive.'
Gagnon says Doral initially has a window of 30 days from filing its NOI to accept investor offers. After that time, Doral can apply to the court for more time. "We need approval from the court to receive a delay. After the 30 days we could have an additional 45 days and potentially another 45 days after that, up to six months, pending the court's approval. However, if you want to keep all the clients close to a company, you need to move fast. If any parties are interested, they should manifest that interest quickly.'
Doral's Grand-Mere plant has been shut down for the past month. "There are boats on the line but no work is being done right now,' says Gagnon. "There were some open orders but we haven't spoken with the clients yet.'
Doral Marine International owes its creditors more than $5.4 million dollars. Among the creditors are Investissement Quebec (owed $2,000,000), Fonds Soutien Mauricie (owed $150,000), Ministere du Revenu du Quebec (owed $150,000), and Caisse Desjardins Vallee du St-Maurice (owed $800,000).
Doral also filed for creditor protection in the fall of 2009 and was later purchased by Montreal-area businessman Denis Poliseno in June 2010.
Parties interested in learning more about investment opportunities with Doral Marine International should contact Jean Gagnon at firstname.lastname@example.org