A7

By Dan McHardie, CanadaEast News Service

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Atomic Energy of Canada Ltd. would gain no advantage if it wins its bid to have Precision Nuclear Inc. placed in receivership, according to court documents filed Wednesday.

The Mactaquac manufacturing company told AECL it had to accept blame for some of the setbacks in delivering the 824 end fittings for the fuel channels in the Point Lepreau refurbishment.

In its court documents, the federal Crown corporation claims Precision Nuclear is in a financial crisis and a stream of missed deadlines could throw the Lepreau project off schedule, as well as a project in South Korea.

Precision Nuclear lawyers countered, saying AECL owed it money for buildings the nuclear agency requested it to build and AECL had lifted intellectual property estimated at "several million dollars" without permission.

Charles Bird, a lawyer representing Precision Nuclear, told the court AECL "has absolutely nothing to fear from PNI."

"AECL isn't going to gain anything by this receivership," Bird said.

AECL has permanent staff inside the manufacturing facility and Alix Partners – a firm picked by AECL to review Precision Nuclear's operations – is acting as a restructuring agent. Bird argued that by putting the company in receivership, it could hurt its ability to find new customers.

Court documents filed by the company described internal confusion at AECL when it came to engineering requirements that added expense and caused delays.

David Rioux, president of Precision Metal Works and Precision Nuclear, said in an affidavit that NB Power president David Hay "has no difficulty with the progress and product of PNI."

Judge Peter Glennie of the Court of Queen's Bench in Saint John has reserved time into Friday to hear the dispute.

"We feel that we needed to take this step. It is a drastic measure, but it was the only viable option that we had available to us to protect the integrity of the schedule," AECL spokesman Dale Coffin said.

Precision Nuclear has 105 employees and is often held up as an example of homegrown businesses that can be generated by the coming energy-sector investments.

Premier Shawn Graham said in his recent state of the province address he was pleased the Liberal government could help broker the deal to have Precision Nuclear supply AECL's end fittings for the reactor-refurbishment project.

The Liberal government has put a lot of pressure on NB Power and AECL to bring the $1.4-billion refurbishment project in on time and within budget. Energy Minister Jack Keir said Wednesday NB Power and AECL are telling him the project is still on schedule.

An NB Power spokeswoman said AECL has assured the company "that it is business as usual and this is really a matter between AECL and Precision Nuclear."

Pam Allen-LeBlanc, vice-president of sales and marketing for Precision Nuclear, called many of AECL's allegations troubling, but downplayed the long-term impact this dispute would have on the relationship between the two companies.

"I have to say at this point I don't believe the working relationship has been compromised in any way and certainly I believe all parties will respect the findings of this court," she said. "I guess it is my hope that we will take the findings, respect and move forward. This company has a future, we have 25 years worth of work in this industry, there are other customers that in fact we are speaking with."

A Business New Brunswick spokesman said the province has a $1.5-million forgivable loan outstanding with the company, as well as a $350,000 capital lease arrangement.