Burry's Shipyard files notice under Bankruptcy and Insolvency Act

Clarenville's Burry's Shipyard Inc. has filed a notice of intention to make a proposal under the Bankruptcy and Insolvency Act (BIA).

Owner Glenn Burry told CBC News a few weeks ago that the company had no work lined up, after losing a government contract to refit a ferry.

Deloitte Restructuring Inc. has been appointed as the licensed insolvency trustee under the filing, according to documents on Deloitte's website.

In a letter to creditors, Deloitte says Burry's Shipyard has 30 days from July 10 which is the filing date to either make a proposal to its creditors or to seek an extension from the courts.

"The effect of the [notice of intent] filing is an automatic stay of proceedings against all creditors from commencing any actions against Burry's Shipyard Inc.," reads the letter from Deloitte.

Some 100 workers laid off

Burry had told CBC News that he laid off about 100 workers.

"We have nothing in sight at this time. It's very serious for the area, and us, to say the least," he said earlier this month.

Burry said the shipyard was counting on the contract to repair the MV Gallipoli. The vessel refit was about halfway complete, when, in February, the cradle underneath the ferry partially collapsed, leaving it stalled at the water's edge.

The vessel was eased back into the water, and the company provided government with a new timeline as to when it could be finished.

Transportation and Works Minister Steve Crocker said that a third-party assessment showed that the timeline Burry's was promising was not realistic.

The refit of the MV Gallipoli was moved to Newdock St. John's Dockyard Limited.

Burry did not immediately respond to an email from CBC News on Thursday requesting comment.