Britex Group Ltd. operating under receivership

Oct 2, 2003

HALIFAX - Britex Group Ltd., a Bridgetown textile operation, is now operating under a receiver until a buyer can be identified.

Nova Scotia Business Inc. (NSBI) and the Department of Economic Development jointly appointed KPMG as the receiver for Britex today.  The receiver will manage daily operations at the plant and aggressively seek a qualified buyer.

The receiver will ensure that operations continue at a level that provides the most attractive business opportunity for a prospective new buyer. NSBI believes that a profitable business opportunity may exist, under the right circumstances, and hopes that a long-term solution can be identified quickly.

Nova Scotia Economic Development authorized a 90-day extension on a $900,000 loan guarantee for Britex to permit time for projected sales to materialize and allow the company to conclude negotiations with Nova Scotia Business Inc., its main creditor. Britex currently owes NSBI approximately $3.6 million in loans and interest.  NSBI has been in discussions with company management for the past several months but was unable to reach an acceptable agreement that, in NSBI's opinion, would result in a viable and sustainable long-term solution for the operation.

Nova Scotia Business Inc. is the province's business development agency, an organization that works with companies to deliver business solutions. The private sector-led organization works to attract new businesses to the province and help those already in Nova Scotia expand through services such as export development and financing.