REGINA, April 10, 2015 /CNW/ - This morning Advance Engineered Products Ltd. ("AEPL") filed with the Court of Queen's Bench of Saskatchewan, Judicial Centre of Saskatoon, (the "Court") for protection from its creditors under the Companies' Creditors Arrangement Act (Canada) ("CCAA"). 1343080 Alberta Ltd. operating as Dumur Industries, a wholly owned subsidiary of AEPL is not affected nor included in the CCAA proceedings commenced today.
"After making significant production improvements and progress over the last six months across our manufacturing operations, a sharp and sudden downturn in the energy market in Western Canada has resulted in customers canceling or deferring sales orders which has materially reduced our manufacturing backlog' said, AEPL CEO Darrell Zwarych. "Like many companies reliant on a strong Canadian energy sector, AEPL is unable to continue operations unabated without a material reorganization of its business".
"The CCAA process, with the support of the senior lenders and other major stakeholders, provides AEPL an opportunity to restructure its financial obligations in conjunction with its major stakeholders and right-size its operations to reflect the current reality of the energy sector" said Zwarych.
AEPL is one of Canada's largest manufacturers of tank trucks, trailers, and vacuum truck equipment with manufacturing operations in Saskatchewan, Alberta and Quebec. AEPL operates under the brand names: Advance, Lazer Inox, and Westech. In addition, the company operates parts and services operations, under the brand name Advance Tank Centers, in Saskatchewan, Alberta and British Columbia.
While staff reductions have occurred at its manufacturing facilities, the Advance Tank Centers in Edmonton, Lloydminster, Calgary, Regina and Surrey will continue to operate normally. The continued operations will focus on providing superior service to its customers.
"We believe that this protection will provide the stability as well as the breathing room necessary to restructure the business. AEPL is a great Canadian business with a rich history. It has gone through challenging times in the past, but by focusing on developing a prudent cost structure and delivering value for its customers, it will ultimately, and once again, demonstrate its proud heritage and meet the needs of its valued stakeholders", said Zwarych, adding, "we are confident about our future".
SOURCE Advance Engineered Products Ltd.
For further information: Darrell Zwarych, CEO, 306-721-4803