DME owes more than $27M, new documents reveal

The receiver for Diversified Metal Engineering (DME) released a list of creditors that shows DME owes money to dozens of Prince Edward Island companies.

More than 50 Island companies among the hundreds on the creditors list

The receiver, Alvarez & Marsal, was called in by the Royal Bank of Canada and was appointed last month. (Brittany Spencer/CBC)

The receiver for Diversified Metal Engineering (DME) released a list of creditors that shows DME owes money to dozens of Prince Edward Island companies. 

DME is a P.E.I.-based company that builds brewing systems for the craft beer industry. It also makes stainless steel products for other industries.

The entire list names more than 700 creditors between DME's operations in Charlottetown and Abbotsford, B.C. The creditors list includes companies from around the world, along with individuals and government agencies. More than 50 of the companies owed money are on P.E.I., along with approximately 140 people with Island addresses.

The receiver, Alvarez & Marsal, was called in by the Royal Bank of Canada and appointed by the Supreme Court of P.E.I. on Nov. 26 after the bank reported the company had defaulted on payment.

The Royal Bank is listed in the document as DME's only secured creditor — meaning it has priority over the payout of DME's assets.

DME is a P.E.I.-based company that builds brewing systems for the craft beer industry. It also makes stainless steel products for other industries. It has been in business for 27 years. (Pat Martel/CBC)

The CBC previously reported that DME and certain guarantors owed the bank just over $18 million dollars as of November 22. 

The latest documents posted by the receiver indicate — with the addition of the company's unsecured creditors — DME owes just over $27 million. Around $1 million of that is listed as being owed to P.E.I. companies.

However, nearly half of the companies and individuals named in the creditors document don't have dollar amounts listed. Those numbers still have to be determined. The final amount DME owes could change.

DME assets valued at $71 million

The receiver also released an estimated value of DME's assets. As of Sept. 30, 2018, the company was valued at roughly $71 million. About half of that value was attributed to the company's good will, including its name and proprietary assets.

The receiver noted in the documents that actual values could "materially differ" from those indicated in the estimate.

DME has been in business for 27 years. It has about 150 employees at its operation in P.E.I. and 100 at its BC location.

The receiver said it plans to sell the company as a going concern, with the hope of finding a buyer to reopen the business. It has also said it will be paying employees owed wages and accrued vacation.

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