Arguing for creditors in court
Wabush mayor, chamber of commerce wade into Wabush Mines legal proceedings
Wabush Mayor Colin Vardy will wade into the court proceedings regarding Wabush Mines.
Vardy, who is also vicepresident of the Labrador West Chamber of Commerce, will file an objection with the federal court in Montreal on Sept. 28 objecting to the extension of the Companies Creditors Arrangement Act (CCAA) court proceedings with Wabush Mines.
According to a memo circulated by the chamber of commerce to its membership Friday, Vardy will be given the opportunity to speak directly to the judge on two occasions to explain the impact of the Wabush Mines closure on Wabush and Labrador City.
A special meeting of the Labrador West Chamber of Commerce is being held Sunday to discuss the issue and get feedback and advice from the business community.
The CCAA, the chamber explained in its memo, is designed to allow companies to restructure and come out at the end as a strong enough company to satisfy its debt and liabilities.
“With regards to Wabush Mines this legislation has been misused to allow a company to continue to avoid bankruptcy and extend the process long enough that the creditors will see pennies on the dollar at best,” the chamber stated in the memo.
The special meeting for all chamber members is being held at the Tamarack Drive Professional Building at 6:30 p.m. Sunday.