Ex-Atcon exec sues N.B. firm for unpaid bills

New Brunswick taxpayers should be wary of dealing with the financially troubled Miramichi, N.B.-based Atcon Group, according to a former vice-president of the construction company.

Kevin Pytyck served as Atcon's Calgary-based vice-president for its western operations until it closed the office in 2008. He is now the latest plaintiff to sue the firmfor unpaid bills.

Pytyck, whowas recruited away from a corporate job to set up Atcon's western office, said he wasn't paid the severance that was built into his contract. Additionally, he is alleging that Atcon stiffed his personal company on office leases.

In documents filed with the Court of Queen's Bench in Calgary, Pytyck is asking for $408,000 in unpaid severance. Also in the statement of claim, Pytyck's company is demanding $323,000 in an unpaid bonus, $229,250 for early termination of a lease and $48,000 in other unpaid fees.

He filed his lawsuit a year ago and he said Atcon has dragged its feet in responding.

He said he doesn't know if the delay is the result of Atcon's money problems.

"It would appear that cash flow isn't healthy so that certainly could be a factor," Pytyck said.

In June, the New Brunswick government guaranteed $50 million in loans for Atcon, saying it would help maintain jobs. However, within a few months companies that were owed money by Atcon started complaining publicly about delinquent bills.

Pytyck said he doesn't know what the company's finances are like now but he offered some advice for New Brunswickers.

"I would recommend that they monitor the implications of that commitment quite closely," he said.

The Calgary-based businessman said the experience with Atcon has been "very difficult and very damaging."

"Myself personally and my small, small corporation have incurred significant losses in honouring commitments made on Atcon's behalf," Pytyck said.

Atcon has blamed the recession and non-payment of its own bills for its problems. No one from the company responded to an interview requestTuesday.

The Miramichi-based vice-president who used to handle media requests, Mark Ledwell, left Atconlast fall.

However, Atconsaid in a statement of defence filedin the Calgary courtit did not wrongfully dismiss Pytyck and it is not responsible for paying for any other lease arrangements with Pytyck's company.

Other unpaid bills

Pytyck is amongseveralwestern Canadian companiesseeking money from Atcon. 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.

A company official with Alberta's Tracer Industries also threatened in September to take Atcon to court for failing to pay $656,000.

ButAtcon was required torepay any outstanding bills to New Brunswick suppliers inthe province's $50-millionassistance package.

Atcon owed more than $6.5 million, according to a list of unpaid New Brunswick creditors, which was compiled beforethe province cameto the company's rescue.

Along with unpaid bills, Atcon has also been criticized over delays ina major contract with the Northwest Territories government. The company is more than a year behind schedule with the Deh Cho Bridge project.

Atcon has a diverse group of industrial-based companies focusing on four primary sectors: heavy civil construction, steel fabrication and machining, environmental products and services, andwood products.