North Lake Seafoods bankrupt

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Supreme Court of Prince Edward Island

North Lake Seafoods is officially bankrupt after a P.E.I. Supreme Court judge’s ruling Thursday.

Justice Ben Taylor issued the order after an application from Ocean Pride Fisheries Ltd., which is one of the company’s creditors and leased its fish processing plant to North Lake Seafoods.

Taylor also appointed Grant Thornton as the trustee of North Lake Seafoods’ estate.

Ocean Pride claimed it hadn’t received any lease payments from North Lake Seafoods since a lease on its Elmira fish plant began in April and the company owed almost $490,000 to numerous creditors as part of its rental agreement.

Of that amount $445,611.40 was owed to Ocean Pride in outstanding rent.

The court records also claimed North Lake Seafoods owed the Canada Revenue Agency more than $127,000.

Newfoundland-based wholesaler Whitecap International Seafood has some of North Lake Seafoods’ unsold lobster, which documents filed in court said was worth an about $480,000.

Proceeds from the sale of that lobster would be used to pay some of the company’s debt.

Ian MacPherson, manager of the P.E.I. Fisherman’s Association, said the plant’s closure will lead to lost jobs and fewer players in the fishing industry.

“With the current surplus of lobster on the market, it will be difficult for someone to start up this spring and make money,” he said.

MacPherson said fewer plants open means reduced competition on the wharf for prices and fewer jobs.

“We need both sectors healthy.”

Organizations: Ocean Pride Fisheries, Grant Thornton, Canada Revenue Agency

Geographic location: North Lake, P.E.I. Fisherman

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Recent comments

  • At the end of the day, there's a reason for this . . .
    December 23, 2012 - 11:34

    Just for or a minute, if Islanders would just stop complaining and listen carefully to our premier, perhaps we could understand his reasoning and logic about using tax-payers funds for corporate support? "Madam Speaker, Madam Speaker, Madam Speaker, Madam Speaker, at the end of the day Madam Speaker. At the end of the day! If people would just believe in me, Madam Speaker, at the end of the day, at the end of the day. Madam Speaker, Madam Speaker . . . at the end of the day! Thank you, Madam Speaker." Well, I guess that pretty much clears everything up.

  • Just wondering
    December 23, 2012 - 09:33

    How much money did the people owning the company end up with?

  • don
    December 22, 2012 - 15:07

    same as a lot of motels that are for sale there names are on the list as PNP. maybe the feds should see why? same as this plant.

  • ralph
    December 22, 2012 - 13:26


    • to ralph
      December 23, 2012 - 12:03

      Rest easy. This was a private company - so therefore no money out of your pocket.

  • benbarr
    December 22, 2012 - 12:51

    never ending problem, why not try sometrhing different???

  • don
    December 22, 2012 - 03:13

    must have ran out of PNP money now they broke.and wants to be bailed out by islanders.

  • Nor easter
    December 22, 2012 - 01:31

    guess this is no big surprise.No boats ,no commited price .no fish.wake up