Atcon Construction

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Atcon Construction is a New Brunswick based construction firm which was the first general contractor for the Bridge project, based on the $135 million construction bid it made in July 2007.

In June 2009, a dispute between Atcon and its subcontractor Ruskin Construction caused a one week halt in operations. The DCBC later removed the responsibility for Ruskin's foundation work from Atcon, and contracted directly with Ruskin for this portion of the work.

In December 2009 renegotiation of the construction contract necessary due to the design changes could not be agreed upon by Atcon and the DCBC. Atcon was removed as general contractor, and will have its equity stake bought out. Ruskin was eventually named the new general contractor.

In February 2010 the Bank of Nova Scotia asked that Atcon Construction be placed under creditor protection, and a number of other Atcon Group companies in receivership. Scotiabank is owed $100 million of the $250 million in outstanding Atcon-related debt. The loss of the Deh Cho Bridge contract was cited as one a number of factors in Atcon's financial troubles. [1]

Settlement

In October 2010, Atcon's receivers submitted a claim on the DCBC contract for $5.3 million in unpaid termination costs, included the return of equity. The GNWT challenged the amount, and settlement negotiations began.

On November 6, 2012, Atcon's receivers and the GNWT agreed in principle to a $1.3 million payment to cover all claims. The agreement[2] was filed with the bankruptcy judge in New Brunswick on April 8 for what is presumably a pro-forma approval, 15 days after which the GNWT must make payment. Atcon's claim included $650,000 for equity, and since the GNWT would have known that would be returned, as well as at least some of the construction claims, it is quite likely that the existing construction budget will have covered this $1.3 million payment without the need for new money.


References

  1. "Atcon in Receivership", CBC News, March 2, 2010.
  2. TWENTY-FIFTH REPORT OF THE RECEIVER - Atcon receiver's report on GNWT settlement.