November 7, 2018
OpenHydro Technology Canada, a Dartmouth, Nova Scotia-based company and wholly-owned Canadian subsidiary of OpenHydro Group of Ireland, which is controlled by French-based Naval Energies, converted its BIA proposal proceedings to CCAA proceedings on November 7. The group of companies specializes in developing marine-based renewable energy solutions, including harnessing tidal energy to create electric power. OpenHydro was managing the Cape Sharp Tidal Venture (CSTV), a tidal energy project located off Nova Scotia in the Minas Basin, an inlet of the Bay of Fundy. The CSTV is a joint venture of which OpenHydro’s parent company is the majority shareholder. OpenHydro’s operating capital was cut off when its parent company, OpenHydro Group, filed for liquidation in Ireland. One of the company’s main assets is the Scotia Tide, a barge used in the installation, recovery and testing of CSTV’s tidal turbines. The barge, which was built in 2016 at an approximate cost of $30.0MM, is subject to numerous marine claims filed in the Federal Court. The company plans to initiate a sales process for the Scotia Tide barge as well as attempt to recover various financial assets in hopes of satisfying the claims of its creditors. OpenHydro owes approximately $6.0MM to a variety of Atlantic Canadian marine service contractors that helped in the installation of a turbine in July, but never received payment. The Supreme Court of Nova Scotia approved a $500.0M DIP facility and charging order; however, the CCAA Initial Order did not exempt the marine claims from being advanced in the Federal Court. OpenHydro is meeting with its counsel to prepare a motion to the Federal Court to have the CCAA stay of proceedings recognized by the Federal Court. Grant Thornton was appointed monitor. Cox & Palmer is counsel to the company.