Millions of dollars of public funds at risk in Duvaltex: “Quebec government is actively pursuing the matter”

“It is impossible to answer this question at this point,” admitted the Ministry of Economic Affairs The newspaper wanted to know how many millions of dollars in public money Quebec could lose by restructuring the textile company Duvaltex.

In three years (from 2018 to 2021), Duvaltex and its subsidiary Armfoam received loans worth $42 million (see table below), but according to the list of secured creditors consulted by Le Journal, the amount in question was on the Ministry of Economy, Innovation and Energy (MEIE) side would amount to $9 million.

The debt to the Business Development Bank of Canada (BDC) is around $16.2 million and to Export Development Canada (EDC) it is $6.2 million.

“The Quebec government is actively following the file and is in contact with the company’s managers to ensure that the financial interventions granted to the Duvaltex consortium are protected,” MEIE spokesman Jean-Pierre assured the Journal. From Auteuil.

“Pursuant to the provisions of the Companies’ Creditors Arrangement Act, Duvaltex intends to meet its financial obligations during the restructuring process,” Duvaltex said in response to a question on the matter.

Beauceronne Duvaltex, one of the largest textile manufacturers of furniture, was founded in 1947 and is drowning in $80 million in debt.

No job losses

In mid-December, Duvaltex received an initial order to seek protection under the Companies’ Creditors Arrangement Act (CCAA).

“We have developed and are in the process of implementing a restructuring plan with the goal of being a viable organization that will be able to meet the challenges of current market conditions,” Duvaltex spokesman Joel told the Journal via email Sergerie.

“We do not anticipate any job losses as a result of the CCAA proposal. Payroll is secure throughout the restructuring process,” he emphasized. According to the controller’s report consulted by Le Journal, more than 340 employees work at Duvaltex.

Production takes place mainly in Quebec, in Beauce. Duvaltex also has a presence in Maine and Michigan. According to the document, more than 95% of sales come from the United States.

Millions of dollars of public funds at risk in Duvaltex: “Quebec government is actively pursuing the matter”

Key Duvaltex Milestones Extract from the Controller’s Report

According to Duvaltex, this decision had to be made to move the company forward.

“We are confident that we will emerge from this ordeal a much stronger organization,” the company concluded.

– In collaboration with Sylvain Larocque and Philippe Langlois

Millions of dollars of public funds at risk in Duvaltex: “Quebec government is actively pursuing the matter”

Public aid of all kinds for Duvaltex over the years. Data provided by the MEIE


Posted

in

by