Minister tight-lipped on Atcon
The minister of Business New Brunswick won't comment on allegations about the CEO of the financially troubled Atcon Group.
Victor Boudreau said that could jeopardize Atcon's attempts to restructure, with the receivership still in court.
It could also affect whether the province has to ante up the full $50 million it promised the Miramichi-based company in loan guarantees, he said.
In court documents, Atcon's bank and the accounting firm appointed to monitor the business have both been critical of company CEO Robbie Tozer.
'There's going to be a lot of 'He said, she said.'' —Business New Brunswick Minister Victor Boudreau
Two weeks ago, five Atcon companies were placed into receivership, while seven others were placed under creditor protection after Atcon's main lender, Scotiabank, called in its loans.
Ernst and Young has been reviewing the Atcon companies, trying to find ways to restructure them, or sell their assets. Scotiabank claims Tozer wouldn't listen to their advice and didn't tell them Atcon had lost a major contract.
Ernst and Young alleges Tozer hasn't been in the Atcon office to meet with its accountants.
The allegations have not been proven in court.
"There's going to be a lot of 'He said, she said,'" said Boudreau.
Restructuring not smooth
But he acknowledged the restructuring process hasn't been smooth.
"Now did everybody agree on everything all the way through the process? Probably not."
In January, before Scotiabank had called in its loan, but after the Atcon Group had lost the $165-million Deh Cho Bridge contract in the Northwest Territories, Boudreau told CBC that taxpayers didn't need to worry about the $50 million in loan guarantees.
"Atcon is not a one trick pony; they don't just have one contract that they're working on," he had said, adding that he had faith in the company.
On Thursday, Boudreau defended the government's decision to give Atcon the loan guarantees.
"Unfortunately we didn't succeed in this one. And I know it's a big one and that's why it's attracting a lot of attention. But we've assisted almost 300 companies in different capacities since coming to office," he said.
"You know this isn't the first one that has gone bad, albeit maybe it's the biggest one, but it's not the first one and it probably won't be the last one either."
Earlier this week, Finance Minister Greg Byrne said that while the province has supported the Atcon Group in the past, it may part ways with the company in court.
The government has to do what it believes is in the best interests of taxpayers, he said.
Tozer has been unavailable for interviews.
He has until next week to come up with a viable plan for the Atcon companies. Otherwise some of them may be liquidated.
Scotiabank says Atcon owes its creditors about $250 million, though Tozer says in his March 12 affidavit that $96 million of that will be recouped when various leases expire.
A lawyer for the government told the Court of Queen's Bench in Miramichi Monday that the province will have to pay Scotiabank the $50 million as early as this week and then seek repayment as a creditor.