Honourable Michael F. Currie, Minister of Development and Technology, today announced negotiations with the owners of Summerside Seafood Supreme have ceased, and it appears unlikely the plant will operate for the coming processing season.
Minister Currie said his department has been negotiating for over five months with Daley Brothers Ltd. of Newfoundland, the group that now controls 60 percent of Summerside Seafood Supreme.
Negotiations were based on the Province recovering the $2.825 Million loan guarantee for an operating line of credit that was called by the company's bank last spring.
"We made it clear to the company that the loan guarantee was offered in good faith, based on assurances from the company that it had adequate working capital to operate in 2001, but the plant did not operate last summer," the Minister said. "Before there is any activity at the plant, that money has to be recovered, but that has not happened."
Since the plant was not in operation last year, Minister Currie said there will be no additional impact on the local economy.
"The economy of Summerside area is very strong, and the Province has invested in other sectors in the area which are performing well," concluded the Minister.