A major manufacturer of solar panels and electrical components for renewable energy producers is saddled with debt and has just sought protection in the courts Bankruptcy and insolvency law.
The Journal has learned that Saint-Augustin Canada Électrique Inc., better known by its acronym STACE, filed a letter of intent last week to make a proposal to its creditors.
The 250-employee Quebec company faces about $74 million in unpaid debts to a staggering 274 creditors, according to preliminary documents filed in Superior Court.
Normand Lord, President and CEO of STACE Photo Stevens LeBlanc
For now, only the Bank of Montreal (BMO) appears among the secured creditors. Stace would have accumulated debts to him of no less than $65 million.
The 273 other named creditors, all unsecured, have accumulated $8.7 million in debt. The largest shortfall ($3.3 million) goes to Barr Fabrication Field Services, a Texas company active in the wind industry.
Stace's headquarters and principal locations are located in Saint-Augustin de Desmaures, west of Quebec. Image credit: Google Earth Google Earth
In addition to affiliated companies, Stace's other major unsecured creditors include KPMG ($301,000), Plessisville-based CBR Laser ($292,000), Fasken Martineau ($223,000), IDE Trois-Rivières ($205,000 ) and Plate 2000 ($182,000). from Saint Anselme.
Factory confiscated in Matane
The company's difficulties unfortunately come at a time when Quebec is beginning to seriously embrace the potential of wind and solar energy production to support its hydroelectric fleet. As is well known, this is no longer enough to cover the growing demand for electricity.
Recall that in early February, at the request of the Business Development Bank of Canada (BDC), the court appointed a receiver to take control of Stace's assets in Matane and begin a process to sell the assets.
The former German Enercon factory in Matane was purchased by Stace in autumn 2021. Wec Tours (Enercon)
Formerly owned by Germany's Enercon, this wind turbine tower manufacturing facility was to be used to produce renewable energy batteries, a technology that Stace had developed in collaboration with the University of Sherbrooke.
In addition to this Gaspé factory, Stace had operations in Trois-Rivières, producing photovoltaic panels for solar energy producers, and in Saint-Augustin-de-Desmaures, near Quebec, where its headquarters are located.
After seeing some of his panels purchased by Hydro-Québec for its La Prairie solar farm and being involved in the development of dozens of solar farms in Europe and the United States, Stace was hired by Quebec 18 months ago to build a solar farm commissions 32 MW solar park in Gaspésie. This project is now on hold.
–In collaboration with Philippe Langlois, Investigation Bureau
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