LA Renaissance Des Isles is saddled with more than $21 million in debt

The Magdalen Islands Seafood Processing Company, which has placed itself under the protection of the Insolvency and Bankruptcy Act, is struggling with a more difficult financial situation than anticipated.

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Saturday, QMI Agency reported LA Renaissance des Isles (LRDI) estimates its 66 lobster fishermen owe between $3.5 million and $4 million.Those who do not pay for their last two weeks of fishing landings of the season.

However, according to the insolvency trustee in charge of the file, LRDI owes a total of more than $21 million, including $16 million to its secured creditors and $5 million to its other creditors, including fishermen.

“We are still adequately completing the list of creditors, verifying inventories and receivables, as well as operating expenses to establish the best possible cash budget, which should be filed within 10 days,” Jose Metivier Roberz of Roy Roy’s firm told us via email, Tuesday.

The Quebec firm’s emergency was mandated last Friday by the company’s president and CEO and sole shareholder, Lynn Albert, when the bank refused to release funds to pay its factory workers.

According to the trustee, Mr.^me Albert is negotiating with the financial institution’s legal department to try to secure an agreement to save the company from bankruptcy.

“As has happened in recent weeks, due to the significant drop in lobster and crab prices, which has resulted in significant losses on operations, we must ensure that customers pay accounts receivable and accept new deliveries without significantly reducing prices. Very little time,” said Jose Robarge.

“At this stage, we are working hard to avoid bankruptcy, which would result in a total loss to all creditors, which would cause significant losses to secured creditors, not to mention the major impact on fishermen, employees and consumers,” he added.

Under the Bankruptcy and Insolvency Act, LA Renaissance Des Isles has 30 days of initial protection, which runs until Monday, September 19.