Published on: 8/26/2014 1:31:36 PM Print | Font Sizes:  Normal Text Large Text

Cast Resources files for bankruptcy


By: Jonathan Migneault

Georges Brouillette, president of City Welding, a Sudbury-based mining equipment manufacturer, said his company was not paid for work it did for Cast Resources in 2012.
Georges Brouillette, president of City Welding, a Sudbury-based mining equipment manufacturer, said his company was not paid for work it did for Cast Resources in 2012.

Cast Resources Equipment Limited, a Sudbury-based company that manufactures used equipment, including scoop trams, underground haul trucks, utility vehicles and drills, filed for bankruptcy on July 4.

According to the notice of bankruptcy filed that day, the company, owned by Robert Lipic, owed $8.9 million in claims to unsecured creditors and an additional $2.1 million to secured creditors.

The list of unsecured creditors featured 182 entries – that ranged from unpaid wages to a number of employees and contracts with companies from Sudbury's mining supply and services sector.

One of those companies was City Welding Limited, which had an unsecured claim of $281,806.

“We were going to buy some new equipment with that money,” said Georges Brouillette, City Welding's president. “It doesn't help at all.”

The company – which features a mining equipment mining shop on Sudbury's Elisabella Street – started work two years ago on scoop trams for Cast and Mining Technologies International, a mining equipment company Lipic also owned, but sold to Joy Global for $51 million in April.

City Welding's unfinished pieces for Cast Resources still sit on the company's property.

Bristol Machine Works, another Sudbury manufacturer, was also hit hard with $231,554 in unsecured claims.

But the largest unsecured claim was to Lipic himself, for an amount just over $1 million.

The list of secured creditors featured 36 names with smaller amounts, apart from a $1.7 million balance of claim with the Sudbury Credit Union.

The creditors were scheduled to meet July 23 and were asked to prove their claims against Cast Resources' estate.

Lipic and BDO Canada Limited, the accounting and advisory firm appointed as trustee of Cast Resources' estate, could not be reached for comment by deadline.

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