Harbour Grace Ocean Enterprises Ltd. Announces Restructuring

HARBOUR GRACE, NL, Nov. 9, 2023 /CNW/ - Harbour Grace Ocean Enterprises (HGOE), a marine vessel repair, refit and construction business based in Harbour Grace, Newfoundland and Labrador, announced it has commenced restructuring proceedings under the Companies' Creditors Arrangement Act.

As part of the restructuring, the Supreme Court of Newfoundland and Labrador approved an interim financing facility from St. John's businessman and investor, Kevin English. Mr. English, who is also HGOE's majority shareholder through his company Gray Enterprises Ltd., had stepped away from the management of HGOE's operations two years prior. In an effort to assist the company in overcoming its present difficulties, Mr. English advanced the interim financing needed for the business to remain in operations, protecting the interest of stakeholders including 56 employees.

"Harbour Grace Ocean Enterprises is grateful for the involvement of Kevin English and the continued support of our employees, business partners, and the Harbour Grace community. The company is hopeful to have the support of its secured lenders, including Business Development Bank of Canada and Bank of Montreal, in its effort to restructure and emerge as a going concern that will continue to contribute to the Newfoundland and Labrador economy for years to come." ? Paul Lannon, general manager, shareholder and director of HGOE.

Harbour Grace Ocean Enterprises is a key employer in the Newfoundland and Labrador naval industry, with over $30 million paid in salaries over the last 10 years. About 80% of the company's suppliers are based in Newfoundland and Labrador, representing roughly $6 million reinjected into the provincial economy on a yearly basis. The business' customer base spans multiple industries including fishing fleets, tug and barge operators, offshore energy companies, and aquaculture sea farms. The company notably services Newfoundland and Labrador provincial ferries and Canadian Coast Guard ships.

Harbour Grace Ocean Enterprises continues to work with its advisors and intends to implement a sale and investment solicitation process in the short term, in synergy with other ongoing financial and operational restructuring initiatives. The company plans to emerge from creditor protection as a reinvigorated going?concern business in the interest of customers, suppliers, employees, the Harbour Grace area communities, and the Newfoundland and Labrador economy.

"Harbour Grace Ocean Enterprises is working to overcome its recent difficulties and is grateful for the opportunity to do so, thanks in no small part to Kevin English, our partner and interim lender," said Wayne Reid, Operations Officer, shareholder and director of HGOE. "We look forward to continuing to serve our clients for years to come, as this business has proudly done for more than 30 years."

Website: HGOE

SOURCE Harbour Grace Ocean Enterprises Ltd.