Atcon denied further protection by N.B. judge

A judge has denied a request from the Atcon Group to extend creditor protection for another two months.

Justice Thomas Riordon of the Court of Queen's Bench said Tuesday another extension "would only delay the inevitable," and there was no real prospect for restructuring the Miramichi-based Atcon, which has been involved in numerous construction projects, including dams and highways, as well as manufacturing and environmental services to industry.

CEO Robbie Tozer had argued Atcon's construction arm could start to bid on contracts and make money if it had until the end of May to restructure.

Scotiabank asked in February that some of Atcon's companies be placed in receivership. Riordon granted Atcon two previous extensions — on March 16 and March 22. 

It had not been confirmed Tuesday night whether Atcon has now been placed in receivership as a result of Riordon's latest decision.

Riordon also said it is "of considerable significance" that the Atcon request was opposed by the province and its biggest lender, Scotiabank.

Atcon, owes creditors about $250 million.

The province paid Scotiabank $50 million earlier this month to cover its loan guarantee. The province can now try to recoup that money from the receivership process.

Earlier Tuesday, Tozer told reporters taxpayers got their money's worth for all the government assistance he received.

"The Atcon Group has probably invested $60 or $70 million into taxes in the province, so it's probably not a bad deal," he said.