A P.E.I. Supreme Court Justice declared North Lake Sea Foods bankrupt on Thursday at the request of the company's largest creditor.
North Lake Sea Foods is more than a half million dollars in debt, with its biggest creditor being Nova-Scotia based Ocean Pride Limited. Ocean Pride owns the plant in North Lake, at the northeastern end of the Island, and had leased it to North Lake Sea Foods.
Nobody from North Lake Sea Foods attended the hearing Thursday.
The court heard that the company has not paid any rent since it took over the premises in April of this year and now owes Ocean Pride $554,000. Court also heard North Lake Sea Foods owes more than $100,000 to the Canada Revenue Agency, Maritime Electric and Irving Oil, among others.
The facility has struggled to make money under a couple of different operators in recent years.
The bankrupt fish plant operator still has one asset, a quantity of frozen lobster, which Ocean Pride said should be enough to cover all outstanding debts. That lobster is sitting unsold in freezers owned by a Newfoundland company.
If and when that lobster is sold, proceeds will go to the people and companies who are owed money by North Lake Sea Foods.
About 120 people worked at the plant last year during the fishing season. No one from North Lake Sea Foods could be reached for comment Thursday.