Atcon faces $1M lawsuit over unpaid bills

A Manitoba-based company is suing Miramichi's Atcon Group for more than $1 million in unpaid bills, just months after the company received $50 million in loan guarantees from the New Brunswick government.

Winnipeg's Industrial Commercial Equipment Manufacturing, which makes large furnaces and air systems, filed a notice of action in the New Brunswick Court of Queen's Bench in Fredericton on Aug. 24 demanding Atcon pay $1,016,469.

This complaint comesa week after a company official with Alberta's Tracer Industries told CBC News Atcon is delinquent in paying $656,000.

Rick Roneki, president of Industrial Commercial Equipment Manufacturing,said in an interview that he's been trying to collect theunpaid balance owed by Atcon since March.

He said he assumed the New Brunswick government's $50 million in loan guarantees would clear the way for payment.

Roneki said Atcon's failure to pay is stretching his company thin financially at a time in the year that he needs some flexibility.

"At this point in time of the year it affects my cash flow dramatically because we're building up inventory for our busy season in the fall. So at this point I'm stretched with my bank because of the outstanding amount," he said.

Atcon didn't respond for a requestto comment on the complaint.

When the province extended the loan guarantees to Atcon in June, there was speculation that the company was having problems paying its bills.

But Robbie Tozer, the company's chief executive officer, insisted at the time that Atcon had paid all of its contractors.

When asked to explain the lack of payment to Tracer Industries last week, a lawyer for Atcon said in an email that the company has been having trouble collecting from companies that it has done work for, so that has made it difficult to pay its suppliers.

Sub-contractor for Atcon

Industrial Commercial Equipment Manufacturing was a sub-contractor for Atcon's work on the CNRL Horizon oilsands project in Alberta.

When Roneki contacted Atcon for his money, the Miramichi-based company told him to collect from CNRL, which he says was not part of the deal.

"My contract is still with Atcon, and I still have to collect my money from Atcon, not CNRL," he said.

CBC News asked CNRL to explain why it hasn't paid Atcon but its officials weren't commenting either.