Pascol Engineering in receivership purgatory.

• Author: Ross, Ian

Thunder Bay shipyard workers were awaiting news in late January of a potential sale of their parent company which was placed under receivership last summer.

The January 15 deadline for bids by buyers interested in purchasing the assets of Canadian Shipbuilding & Engineering (CSE) and its Thunder Bay ship repair business, Pascol Engineering, passed without word from its court-appointed monitor.

CSE, based in St. Catharines, filed for CCAA (Companies' Creditor Arrangement Act) protection in August.

RSM Richter Inc. of Toronto was selected as the monitor of the CSE group of companies including Pascol Engineering and Port Weller Dry Docks in St. Catharines.

An order was issued November 17 authorizing Richter to begin a sale process for the business and assets of both companies.

Charles Payne, business relations manager at Port Weller Dry Docks, could provide no details on how many bids were submitted nor the level of interest in the two shipyards. "That's handled by the receiver."

CSE handles more than 90 per cent of Canadian dry dockings on the Great Lakes with their Pascol division responsible for two-thirds of that business.

"They are reviewing the bids right now and are hoping to go back to the court with a recommendation within 10 days, says Payne. Pascol staff should know their future once that period has expired.

Payne couldn't comment whether a transaction would involve selling the entire group of companies or parceling off individual assets.

"It's up to the bidders and how they made those offers."

Calls to RSM Richter were not returned prior to Northern Ontario Business deadline.

In a Nov. 23 document to prospective purchasers filed by Richter, CSE blames the decline in business at Port Weller to the softening of the ship conversion and refit market, as well as issues concerning shipbuilding contracts.

Port Weller's revenues for its 2005 fiscal year were listed at $32.4 million, but dropped to $8.4 million for the first nine months of their 2006 fiscal year ending Sept. 30.

While Port Weller's shipyard remains inactive, Payne says Pascol remains "fully operational" at this time.

Pascol Engineering general manager Steve Allen was not available for comment.

The Thunder Bay ship repairer does heavy custom fabrication work, machining and mechanical contracting for shipping companies and the forestry industry The facility is also equipped with a dry dock capable of handling some of the largest Great Lakes vessels.

Herb Daniher, staff...