Canada's Davie Yards Inc (DAV.TO) said it secured $89.2 million in loans from Export Development Canada (EDC) and Investissement Quebec.
Canada's Davie Yards Inc (DAV.TO) said it secured $89.2 million in loans from Export Development Canada (EDC) and Investissement Quebec, as a part of the ailing yard-operator's financial restructuring.
The company, which operates one of the largest shipyards in Canada, said Export Development Canada (EDC) would provide up to $40 million in secured loan for construction of the two multipurpose accommodation vessels for Ocean Hotels Plc.
In a separate statement, the company said Quebec province's funding agency Investissement Quebec would provide it two loans totalling about C$53.5 million ($49.22 million), to finance Davie's refundable tax credits for 2009 and 2010.
In April, Davie Yards had successfully completed a $20 million private placement after raising doubts about its ability to continue as a going concern if the capital raising failed.
Shares of the Levis, Quebec-based company closed up 2 Canadian cents at 14.5 Canadian cents Thursday on the Toronto Stock Exchange.