Davie Yards Inc.

Davie Yards Inc.

July 21, 2011 12:12 ET

Davie Yards Sells its Assets to Upper Lakes

LÉVIS, QUÉBEC--(Marketwire - July 21, 2011) - Davie Yards ("Davie" or the "Corporation") is glad to announce that it has sold its assets to a wholly-owned subsidiary of Upper Lakes Group ("Upper Lakes"), which intends to operate the shipyard in cooperation with SNC Lavalin Defence Contractors ("SNC") and Daewoo Shipbuilding and Marine Engineering ("DSME"). This transaction, approved by the Québec Superior Court (the "Court"), will allow the Lévis shipyard to submit a bid on July 21st under the National Shipbuilding Procurement Strategy ("NSPS").

"We have deployed tremendous efforts to close a deal under enormous pressure, and we are happy that we have been able to sell the yard to a credible buyer who, together with its partners, can ensure a viable future for the yard" said the President and CEO of Davie, Mr. Gustav Johan Nydal. He continued, ''this is good news for our workers and for Quebec since an active yard will ensure significant employment and will have a positive economic impact which will be further enhanced if the yard is selected under the NSPS ."

"We would like to thank the Quebec government for its continued support during our restructuring process, as well as our employees and partners for their patience and cooperation during these tough times", concluded Mr. Nydal.

Davie also obtained today an order from the Court extending the stay of proceedings ordered by the Court to July 29, 2011, the whole pursuant to the Companies' Creditors Arrangement Act ("CCAA").

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. 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 current restructuring under the CCAA, fiscal results, working capital requirements, major disruptions of production, a downturn in economic conditions, competition 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 its current restructuring process under the CCAA, the risks associated with the NSPS, the 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
    +1 418 837-5841 Ext. 2163
    Cel: +1 418 655-1084