Polar Foods, a Prince Edward Island processing company, has been purchased by Ocean Choice of Newfoundland. Polar had been placed in receivership after going bankrupt in February.
On the positive side, the deal means that lobster will be processed this spring, and Ocean Choice has agreed to process all the lobster it purchases in the Maritimes on P.E.I. at the former Polar plants in Souris and at Beach Point.
On the negative side, Polar’s western plants at Howard’s Point and Anglo Tignish will be closed.
Rory McLellan, general manager of the Prince Edward Island Fishermen’s Association, has mixed feelings about the sale. “It’s too bad that the western plants were closed with only the eastern ones open,” he says. “I will say that the new company seems to be making an effort to deal with us, and so far the relationship has been positive.”
The Island’s largest seafood processor was forced into receivership when the provincial government bought the $53 million debt Polar had with the Bank of Nova Scotia, which had called in its loan. The provincial government had provided $26 million in loan guarantees to Polar.
Among the 20 bidders for Polar’s assets were the Fishing Families Co-op and the Barry Group of Newfoundland. Paul Barry issued a statement that he believed that his offer was the “best on the table.” He also indicated that he was contemplating possible legal action.