The troubled past and present of the fish processing company Polar Foods has turned into a troubled – and confusing – future.
The company, based in Charlottetown, Prince Edward Island, was placed in receivership on Feb 27, according to deputy provincial fisheries minister Lewie Creed.
The receiver, Ernst & Young, issued a Notice of Request For Proposals from potential buyers on Feb. 29.
By mid-March, approximately 20 bidders had responded, according to Ann Thurlow, spokesperson for the provincial Ministry of Industry and Technology. She added that the government would work with the receivers to determine the successful bidders and that she hoped for a decision within a week.
Prince Edward Island’s largest seafood processor was forced into receivership when the provincial government bought the $53-million debt that Polar owed the Bank of Nova Scotia, which had called in its loan. The provincial government had provided $26 million in loan guarantees to Polar.
Polar employs roughly 1,200 workers. In its six-year history the company has lost approximately $16.5 million.
As for economic impact on the Island, Rory McLellan, general manager of the Prince Edward Island Fishermen’s Association, is taking a wait-and-see approach to the company’s troubles. “We’re reserving comment until we see how this all shakes out,” he said.