Ian Penney, the trustee for Janes and Noseworthy Ltd., told The Telegram that Kento has merely filed a notice of intention to file a proposal with creditors for a restructuring plan. The major secured lenders are all supporting the proposal, Penney said.
He said Acan in Paradise has shuttered, but Kento operations in Springdale and Conception Bay South will continue. Warranties will be honoured as well and people will be paid, Penney said.
The notice of intention filed with The Superintendent of Bankruptcy Canada, basically stops the music and gives the company a chance to restructure, Penney explained.
Kento is operating as normal, and will continue to do so,” he said.
“It is not bankrupt,” Penney said.
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He said when Kento bought Acan about a year ago, it was financially troubled and Kento hoped to turn that around, but it hasn’t happened, putting the overall entity in financial stress.
“Acan at this point has closed,” he said, adding that is not the case for the other two facilities.
There are more than 100 employees in the company, the majority are Kento workers, he said.