Posted by & filed under Corporate Restructuring.

Description: Sardine giant Connors Brothers in Blacks Harbour, New Brunswick, has entered corporate restructuring under the Companies’ Creditors Arrangement Act. Production at the plant continues, good news for suppliers and the up to 800 employees. This is the last plant in North America that still processes the tiny sardines.

Date:  November 29, 2019

Source:  cbc.ca

Link: https://www.cbc.ca/news/canada/new-brunswick/seafood-creditor-protection-bankruptcy-blacks-harbour-1.5378295

 

Discussion points:

1) Why do you think the fish plant would own the municipal water supply?

2) Look online for information on Canada’s Companies’ Creditors Arrangement Act. What does a court-supervised restructuring mean?

3) On page 737 of Wiley’s Financial Accounting: Tools for Business Decision-Making, you can read about another large seafood company, Clearwater Seafoods Incorporated. This section notes that although Clearwater reported a large loss in 2015, it generated significant cash flow from operations. Can you explain how this could happen?

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