Emera confirms Maritime Link workers in Cape Breton will face layoffs

Emera Newfoundland is confirming that at least some workers on the Maritime Link project in Cape Breton are being laid off after one of its major contractors filed for bankruptcy protection.

Major contractor has already filed for bankruptcy protection

Two weeks ago, Abengoa was unable to meet its payroll, but has since paid employees. (Jacques Boissinot/Canadian Press)

Emera Newfoundland is confirming that at least some workers on the Maritime Link project in Cape Breton are being laid off after one of its major contractors filed for bankruptcy protection.

Spanish company Abengoa, which has an office at the Sydport Industrial Park near Sydney, filed for bankruptcy protection in November. It is operating under creditor protection and is working on a plan to restructure $16 billion in debts.

Jeff Myrick, senior manager of communications and public affairs for Emera Newfoundland and Labrador, confirmed there will be layoffs in Nova Scotia. He said in an email to CBC News that Abengoa is "managing its workforce." 

He did not say how many employees would lose their jobs or when.

Abengoa was chosen to build 400 kilometres of overhead transmission lines that will connect the Muskrat Falls hydroelectric project in Labrador to the North American grid.

Two weeks ago, the company was unable to meet its payroll, but has since paid employees.

Despite Abengoa's financial troubles, Myrick said the transmission line is on budget and on schedule for completion in 2017.

With files from Paul Withers