Davie Yards Inc.

Davie Yards Inc.

March 26, 2010 14:23 ET

Davie Yards Obtains an Extension of CCAA Stay Order and Announces Late Filing of Financial Results

LÉVIS, QUÉBEC--(Marketwire - March 26, 2010) - Davie Yards ("Davie" or the "Corporation") (TSX:DAV) announced today that it has obtained an order from the Québec Superior Court (the ''Court'') extending the stay of proceedings ordered by the Court to May 25, 2010, the whole pursuant to the Companies' Creditors Arrangement Act ("CCAA"). The extension will allow Davie to continue its efforts to develop and eventually submit a plan of arrangement to its creditors under CCAA.

Davie also announced that, due to its CCAA proceedings, the filing of its financial statements, management's discussion and analysis and related CEO and CFO certifications, for the fourth quarter and year ended December 31, 2009 as well as its annual information form for the year ended December 31, 2009 (the ''Filings''), will be delayed beyond the filing deadline of March 31, 2010. As a result of Davie's ongoing review process while under CCAA protection, there is a high degree of measurement uncertainty with respect to the appropriate carrying value of certain of Davie's assets on its balance sheet and as a result Davie is unable to prepare its Filings.

Davie intends to file with securities regulatory authorities throughout the period in which is in default, the same information it provides to its creditors when the information is provided to creditors and in the same manner as it would file a material change report.

Davie plans to remedy the default and file the Filings as soon as it able to do so. However, Davie cannot confirm with certainty when, or if it will be able to remedy the default and file its Filings.

Davie also intends to satisfy the provisions of the alternate information guidelines of section 4.4 of National Policy 12-203 as long as it is in default of the filing requirement.

Any recovery for creditors and other stakeholders, including shareholders, is uncertain and will depend on the outcome of Davie's CCAA proceedings.

About Davie Yards Inc.

Davie Yards Inc. owns and operates the Davie yard in Quebec. With over 185 years of operating experience, the shipyard is the largest in Canada and among the largest and most sophisticated in North America. The Corporation has a focus on building large and complex offshore service vessels and rigs, and other sophisticated vessels for commercial and governmental use. Its shares are traded on the Toronto Stock Exchange (DAV). News and information are available at www.davie.ca.

Forward-Looking Statements

This news release contains forward-looking information within the meaning of applicable Canadian securities legislation. These statements include those relating to statements that are not historical facts, and reflect the current intentions, plans, expectations and beliefs of Davie's management ("Management"). Such forward-looking statements reflect Management's current beliefs and are based on information currently available to Management. Forward-looking statements involve known and unknown risks, uncertainties and other factors outside Management's control. A number of factors could cause actual results of Davie to differ materially from the results predicted in the forward-looking statements, including, but not limited to, risks associated with the Corporation's fiscal results, conditions to the completion of the refinancing plan, working capital requirements, major disruptions of production, a downturn in economic conditions, competition and sensitivity to the oil and gas industry and other factors.

Although the forward-looking statements contained herein are based upon what Management believes to be reasonable assumptions, Management cannot assure investors that actual results will be consistent with these forward-looking statements. Certain assumptions underlying the forward-looking statements contained in this news release include Management's assumptions regarding market outlook for the construction of complex offshore vessels as well as the assumptions that new vessels will be delivered on schedule and that the Corporation will attract and retain key personnel in key positions. These forward-looking statements are made as of the date of this release, and Management assumes no obligation to update or revise them to reflect new events or circumstances, except as required pursuant to applicable securities laws. Readers are cautioned not to place undue reliance on these forward-looking statements. For additional information with respect to certain of these and other assumptions and risks, please refer to the Corporation's Management's Discussion and Analysis for quarter ended September 30, 2009 and the year ended December 31, 2008 as well as the Financial Statements for the quarter ended September 30, 2009 and the year ended December 31, 2008, and the Corporation's Annual Information Form dated March 29, 2009.

Contact Information

  • Davie Yards Inc.
    Marie-Christine St-Pierre
    Vice President Communications
    418-837-5841 Ext. 2163
    Cell: 418-655-1084