P.E.I. aerospace plants fail to sell at auction

The future became even more uncertain for two properties that were once major employers in the Summerside area.

Testori Americas and Wiebel Aerospace, which used to employ about 200people, went up for auction Thursday. Many of those present and former employees packed the Summerside courthouse hopingthat someone would buy the two aerospace plants and turn them into successful businesses.

But that didn't happen.

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There was a bid of half a million for the Testori plant in Slemon Park and a $300,000 bid for the Wiebelplant in Summerside, but neither met the minimum bid necessary for a sale to go through.

So now the company that holds the mortgage, P.E.I.Westside Funding, is in a position to try to sell the properties privately.

"The secured lender is owed a significant amount of money and basically hasn't been paid, so this is the same process any bank would take when you don't pay your mortgage," said Robert MacGregor, Lawyer for PEI Westside Funding.

According to MacGregor,neither Wiebelnor Testori have made mortgage payments since at least 2013. That was when the P.E.I. government, which was once a major creditor, wrote off $8 million of Testori's debt and sold the rest to P.E.I. Westside Funding.

Testori and Wiebelwent under creditor protection in 2014, which ended last year.

Wiebel shut its doors last November, while Testori is, according to some of the employees, still operating but with a skeleton staff of a dozen or so.

Jim Noble, who worked for Wiebel Aerospace for 10 years, said he remains hopeful someone will buy the properties and put people back to work.

"It's unfortunate, but I know someone will come along, because these buildings can contribute to P.E.I.'s economy," he said. "Aerospace is very competitive. They have to get the right person to buy these places to be able to continue on, for this to be a striving industry here."

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