Davie Yards Inc.

Davie Yards Inc.

September 15, 2010 13:25 ET

Davie Yards Obtains a New Extension of CCAA Stay Order

LEVIS, QUEBEC--(Marketwire - Sept. 15, 2010) - Davie Yards ("Davie" or the "Corporation") 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 October 29, 2010, the whole pursuant to the Companies' Creditors Arrangement Act ("CCAA"). The extension will allow Davie to pursue its restructuring efforts, to continue the ongoing discussions with potential industrial investors, and to develop and eventually submit a plan of arrangement to its creditors under CCAA.

During the upcoming weeks, Davie will also enter in the qualification process to become one of the two dedicated yards for building large ships in the National Shipbuilding Procurement Strategy ("NSPS"). In order to keep all options open for potential industrial investors in Davie, and despite a good working relationship with Irving Shipbuilding ("Irving"), the understanding reached last year with Irving to cooperate by sharing technology, facilities, and capabilities with respect to the NSPS, has been terminated.

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. 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
    Cel: 418-655-1084
    mc.stpierre@davie.ca