DME owes more than $27M, new documents reveal

The receiver for Diversified Metal Engineering (DME) released a list of creditors that shows DMEowes money to dozens of Prince Edward Island companies.

DME is a P.E.I.-based company that builds brewing systems for the craft beer industry. It also makes stainless steel products for other industries.

The entirelist names more than 700 creditorsbetween DME'soperations in Charlottetown and Abbotsford, B.C. The creditors list includes companies from around the world, along with individuals and government agencies. More than 50 of the companies owed money are on P.E.I., along with approximately140 people with Island addresses.

The receiver, Alvarez &Marsal, was called in by the Royal Bank of Canadaand appointedby the Supreme Court of P.E.I. on Nov. 26after the bank reportedthe company had defaulted on payment.

The Royal Bank is listed in the document asDME'sonly secured creditor meaning it has priority over the payout of DME's assets.

The CBC previously reported that DME and certain guarantors owed the bank just over $18 million dollars as of November 22.

The latest documents posted by the receiverindicate with the addition of the company's unsecured creditorsDMEowes just over $27 million. Around $1 millionof that is listed as being owed to P.E.I. companies.

However, nearlyhalf of the companies and individuals named in the creditors document don't have dollaramounts listed. Those numbers still have to be determined. The final amount DME owes could change.

DMEassets valued at $71 million

The receiver also released an estimated value of DME's assets. As of Sept.30, 2018, the company was valued at roughly $71 million. About half of that value wasattributed to the company's good will, including its name and proprietary assets.

The receiver noted in the documents that actual values could "materially differ" from those indicated in the estimate.

DME has been in business for 27 years. It has about 150 employees at its operation inP.E.I. and 100 at its BC location.

The receiver saidit plans to sell the company as a going concern,with the hope of finding a buyer to reopen the business. It has also saidit will be paying employees owed wages and accrued vacation.

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