Shipbuilder CSE to Seek Funding

Friday, August 25, 2006
The Star has reported that Canadian Shipbuilding & Engineering Ltd. (CSE) will seek government money, cut labour costs and restructure before resorting to a sales process if necessary, the monitor overseeing its bankruptcy protection said in court documents.

CSE was formed 20 years ago by the merger of the shipbuilding and repair divisions of two of Canada's biggest private shipping companies, Canada Steamship Lines and what is now called Upper Lakes Group Inc. The CSL Group — owned by former Prime Minister Paul Martin until 2003 — sold its remaining interest in Canadian Shipbuilding & Engineering in November. Upper Lakes Group Inc. now owns more than two-thirds of CSE, which had 420 employees when all its operations were running.

Peter Cairns, president of the Shipbuilding Association of Canada, said CSE illustrates the struggles of a Canadian industry that is competing with low wages and government subsidies abroad.

CSE sought bankruptcy protection earlier this month and is asking an Ontario judge to extend it until Oct. 13. It suspended operations at its shipbuilding and repair facility, known as Port Weller Dry Docks, in St. Catharines. CSE also has a division called Canal Marine in St. Catharines and a plant in Thunder Bay. In recent weeks, CSE — which has a history of receiving government funding — has been seeking financing from the federal and Ontario governments, and has been in discussions with Export Development Canada, which is likely to be the shipbuilder's biggest creditor in its restructuring.

Management estimated that CSE would need new funding of about $16 million to finish the rest of the ships. Source: The Star

Maritime Reporter September 2015 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

People & Company News

New Jersey Transportation Chief to Resign

New Jersey Governor Chris Christie on Friday said his transportation commissioner Jamie Fox would step down by the end of the month to return to the private sector after only a year in the position.

Eletrobras says Compensation for Hydro Plants Could be $330 mln

Brazil's state-run utility Eletrobras said on Friday a report into six hydroelectric plants found the assets had a remaining value of 1.3 billion reais ($332

Brazil Court Allows Lula Questioning in Petrobras Corruption Case

Brazil's Supreme Court authorized the questioning by Federal Police of ex-President Luiz Inácio Lula da Silva as a witness in a broadening corruption case focused


Japan’s First ME-GI Engine Passes Factory Tests

The factory acceptance test (FAT) of the first ME-GI engine in Japan recently took place at the Tamano Works of Mitsui Engineering & Shipbuilding Co., Ltd. (MES),

Damen's Third Ferry for South Korea

All good things come in threes as Damen delivers the third vessel of the year, from the Damen Fast Ferry (DFFe) series to South Korean operators. Having already

Thyssen Taps Anil Group for Sub Bid

Diversified German conglomerate ThyssenKrupp AG has initiated talks to partner Anil Ambani-led ADAG in building up to 12 submarines in a contract expected to be worth Rs50,000 crore ($7.

Maritime Careers / Shipboard Positions Maritime Contracts Maritime Standards Pipelines Port Authority Salvage Ship Repair Ship Simulators Shipbuilding / Vessel Construction Winch
rss | archive | history | articles | privacy | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.2868 sec (3 req/sec)