Gray Aqua bankruptcy case transferring to N.B.
A major bankruptcy protection case is being transferred from Newfoundland and Labrador to New Brunswick.
The Gray Aqua Group filed for bankruptcy protection at the end of August.
Gray Aqua was issued an eradication order to destroy about a million diseased fish — and that put the company into financial trouble.
The company was hit with three outbreaks infectious salmon anemia.
Under the Bankruptcy Act, the company will file a proposal to its creditors that would allow the company to restructure in order to survive.
In total, the Gray Aqua Group has six companies in Newfoundland on the south coast.
The area is the hub of the province's salmon farming industry, which has produced hundreds of jobs and has helped to revive about a dozen communities. Gray Aqua also has two companies in New Brunswick.
The Supreme Court was asked to grant an application to allow the bankruptcy proceedings to be transferred to New Brunswick.
Lawyer Geoffrey Spencer filed that application.
"The corporate offices are in New Brunswick, the executive are in New Brunswick, all the documentation would be in New Brunswick, and all the witnesses on these bankruptcy proceedings would occur in the province [of New Brunswick]," said Spencer.
"So we felt it made more economic sense, much more efficient administration of the estates to have it all consolidated in that jurisdiction."
Most of the company's employees are also in New Brunswick.
Justice Donald Burrage heard the court application on Friday and allowed the transfer to New Brunswick.
None of the creditors objected to the transfer to New Brunswick, including the Newfoundland and Labrador government, which has a $5 million investment in the Gray Aqua Group.
The company owes about $40 million to 54 companies and lenders.
- An earlier version of this report inaccurately said Gray Aqua had filed for bankruptcy, not bankruptcy protection.Sep 15, 2013 8:30 AM NT