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SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 8-K
Current Report
Pursuant to section 13 or 15 (d) of
The Securities Exchange Act of 1934
Date of Report (date of earliest event reported) : August 11, 1998
Dominion Bridge Corporation
(Exact name of registrant as specified in its charter)
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Delaware 1-10372 23-2577796
(State or other jurisdiction of (IRS Employer Identification
incorporation) (Commission File Number) Number)
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500 Notre Dame Street, Lachine, Quebec, CANADA H8S 2B2
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (514) 634-3550
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Item 3. Bankruptcy or Receivership.
On August 11, 1998, Dominion Bridge Corporation ("the Company")
and each of its principal operating subsidiaries other than McConnell Dowell
Corporation Ltd. (collectively the "North American Subsidiaries") filed a Notice
of Intention to Make a Proposal (the "Notice") pursuant to the Bankruptcy and
Insolvency Act (the "Act") with the Quebec Superior Court in Montreal, Quebec,
Canada (Court No. 500-11-009746-989; Estate No. 41-216784). Under the provisions
of the Act, the Company and its North American Subsidiaries have been granted a
stay of proceedings and protection from all of their creditors.
Effective upon the filing of the Notice, Arthur Andersen Inc. has
been designated as the trustee as monitor of the arrangement under the Act.
Pursuant to the terms of the Act, the Company and its North
American Subsidiaries have until September 10, 1998 (unless extended by the
Court) to file a proposal to all creditors with the Court. The Company is in the
process of evaluating its assets and liabilities toward developing such a
proposal. Pending such a proposal, the Company and its North American
Subsidiaries are continuing as a debtor in possession in the ordinary course.
Item 7. Exhibits.
Exhibit 99.1
Press Release of the Compnay dated August 11, 1998
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Pursuant to the requirements of the Securities Exchange Act of
1934, as amended, the registrant has duly caused this report to be signed on its
behalf by the undersigned, hereunto duly authorized.
DOMINION BRIDGE CORPORATION
By: /s/ Derek S. Tennant
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Name: Derek S. Tennant
Title: Interim Chief Operating Officer and
Director
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EXHIBIT INDEX
99.1 Press release dated August 11, 1998 Filed
Exhibit 99.1 Press Release
NEWS RELEASE
For immediate publication
DOMINION BRIDGE CORPORATION
BEGINS FINANCIAL RESTRUCTURING
Montreal (Quebec, Canada), August 11, 1998 -- Dominion Bridge Corporation
(Dominion Bridge) (NASDAQ: DBCO; VSE: DMO.U) today began its financial
restructuring by filing notices of intent under the Bankruptcy and Insolvency
Act in Quebec Superior Court for itself and the following subsidiaries: Cedar
Group of Canada, Dominion Bridge Inc., Davie Industries Inc., Steen Contractors
Ltd. and Les Entrepreneurs Becker Inc.
The notices suspend the enforceability of all outstanding claims as at August
11, 1998. Creditors must stay any collection proceedings or security
enforcement, if applicable. Under the Bankruptcy and Insolvency Act, Dominion
Bridge and its subsidiaries have 30 days, or until September 10th at the latest,
to submit a proposal to their creditors. The Act allows the Court to extend the
deadline.
Business as Usual
Meanwhile, Dominion Bridge and its subsidiaries are carrying on business as
usual. All work carried out after the date of the notices will be paid in full.
In particular, at Davie Industries, work is continuing on the Amethyst drilling
platforms under construction for Petrobras, the Brazilian oil company. This
project is subcontracted from American Eco Corporation, the Toronto-based
fabrication and maintenance conglomerate. As a result of this $234-million
project, Dominion Bridge and its subsidiaries have over $300 million in backlog
which management hopes to use as the cornerstone of the company's turnaround.
Dominion Bridge's financial partners fully support the company's restructuring,
including American Eco, who has entered into an agreement to manage the
significant components of the company.
"Dominion Bridge has a healthy core business," said Derek Tennant, appointed
company president in late April. "Its expertise is world-renowned, particularly
in the shipyard and infrastructure construction industries. For several weeks
now, we have been assessing various options for financial restructuring and
continue to do so. Delays beyond our control in the sale of our Australian
subsidiary McConnell Dowell left us with no other choice but to seek the
protection of the Court. The company is determined to find a solution that will
protect the interests of our clients while safeguarding the financial stakes of
our employees, suppliers, other creditors, and shareholders as best we can."
--more
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2.
Arthur Andersen Inc. has been appointed trustee for Dominion Bridge Corporation,
Dominion Bridge Inc., Steen Contractors Ltd. and Les Entrepreneurs Becker Inc.,
while Gerald Robitaille et Associes Ltee will act as trustee for Cedar Group of
Canada and Davie Industries Inc.
Founded in 1879, the Dominion Bridge group of companies operates in
international engineering and infrastructure construction markets. Its main
subsidiaries are Dominion Bridge Inc., Steen Contractors Ltd., Becker
Contractors Ltd., Industries Davie Inc. and McConnell Dowell Corporation of
Australia.
Contact: Daniel Larouche
CONCORDIA Communications and Public Affairs
(514) 282-1100, Ext. 106
