The head of the company contracted to salvage the MV Miner said he is walking away from the project.
Abe Shah, of the New York-based Bennington Group, said he met with officials from Nova Scotia's Department of Natural Resources on Tuesday.
Shah demanded the province cover his insurance and equipment going forward.
He said he was refused, and said he has decided to walk away from the salvage project for good.
Shah said he has spent more than $300,000 on the project. He said he plans to sue the province for compensation.
On Oct. 29, the province lifted a stop-work order on the project after reviewing safety plans. At the time, the head of the Bennington Group, said he was ready to turn his back on the salvage because of continuous delays.
The MV Miner has been stuck off Cape Breton's coast for more than a year. It was en route to Turkey when the towline snapped and it ran aground.