A fish plant in southeastern Nova Scotia that got a controversial government loan on the eve of the provincial election has filed for bankruptcy protection.
Blue Wave Seafoods of Port Mouton made the filing on Friday, citing more than $1.1 million in liabilities and no assets.
In August, the New Democratic government gave a $500,000 "restructuring" loan to Blue Wave. The provincial government justified the loan on the grounds it would save jobs at the Port Mouton plant.
"This is 70 jobs in a local community with a company which should have the ability to be sustainable," then Premier Darrell Dexter told CBC News while campaigning on Sept. 9.
Sterling Belliveau, who was the Minister of Fisheries and Aquaculture at the time, said there was "an opportunity to save 70 jobs" in the area. The plant is located in his riding.
Ten days later, Blue Wave put a portion of the plant's processing equipment up for sale.
"Like New — Complete ground fish processing plant for sale," said the notice posted on the Blois Fish Automation Processing website.
The website pitch said, "Only used for six months in plant — installed in 2010. Cost new — $2,000,000. * Will consider sale in pieces, preference as complete package deal."
The Liberals criticized the refinancing loan as unfair to other companies in the fishing industry.
Blue Wave Seafoods has received more than $5 million in Nova Scotia financial assistance since 1998.