Canada. Davie Yards continues negotiations with Fincantieri and DRS

Monday, 23 May 2011

Davie Yards ("Davie" or the "Corporation") has announced that it has obtained an order from the Québec Superior Court (the "Court") extending the stay of proceedings ordered by the Court to July 7, 2011, the whole pursuant to the Companies' Creditors Arrangement Act ("CCAA").

Davie is continuing its discussions with Fincantieri – Cantieri Navali Italiani ("Fincantieri") and DRS Technologies Canada ("DRS"), a Finmeccanica company, regarding the proposed acquisition of the shipyard by an entity that will be majority-owned by Fincantieri.

On May 8, 2011, Davie's yard workers accepted with a strong majority of 93 percent the proposal for a five-year collective agreement presented by the consortium led by Fincantieri.

Fincantieri is one of the world's most prominent and diversified shipbuilding groups. With more than 7,000 ships delivered during two centuries, it has extensive experience in the construction of merchant and military vessels. To encourage the group's growth, Fincantieri has developed a series of initiatives in fields close to its core business, including ship repairs and conversion, marine systems and components, and mega-yachts. Headquartered in Trieste, Italy, the company employs more than 10,000 people and has eight shipyards in Italy and four in the United States. Fincantieri's US subsidiaries build ships for commercial and government customers, including the U.S. Navy and Coast Guard. Fincantieri had a turnover of approximately $ 4.0 billion in 2010.

DRS Technologies Canada Ltd., a Finmeccanica company, and wholly owned subsidiary of DRS Technologies Inc., is a developer and manufacturer of world class systems in the areas of integrated shipboard communication systems and surveillance sensors. It has been a supplier of high-end defence electronics equipment and systems to Canadian Forces and other allied military forces for more than five decades. Finmeccanica is a world leader in the high technology sector and ranks among the top ten global players in aerospace, defence and security. The Finmeccanica group employs 75,000 persons worldwide and more than 12,000 in North America. In 2010, it generated revenues of approximately 18.7 billion euros.

Last Updated ( Monday, 23 May 2011 )