TRENTON. N.S. (CP) -- The owners of the TrentonWorks railcar plant have filed court documents saying they intend to discontinue receivership hearings and apply for bankruptcy.
The action, by Oregon-based Greenbrier, has led to the resignation of TrentonWorks chairman Gerald Regan.
''The company made the decision and as consequence the next day I resigned as chairman and director,'' said Regan.
''Once they went into bankruptcy it seemed to me the appropriate thing to do. I had been chairman there for 15 years and all the guys who have become my friends are out of jobs, so it's kind of tough.''
Greenbrier announced plans to send the plant into receivership in February after failing to find a buyer for the facility.
Court proceedings were supposed to begin this month, but the date was postponed after the United Steelworkers Union, which represents hundreds of workers who lost their jobs when the plant shut down last year, submitted a last-minute request to participate in the hearing.
Regan says the delay in receivership proceedings is what pushed the company to apply for bankruptcy.
''That day, the union showed up in court without any notice and basically told us they were going to oppose it,'' he said.
''As a result of that it was adjourned and it looked like it was going to be a long process.''
Regan said at that point the company decided that instead of prolonging arguments in court they would just go right to bankruptcy.
Dave Fanning, with the Steelworkers Union, said he couldn't comment on how Greenbrier's decision will affect former employees.
''I haven't seen the bankruptcy order. All I know is that creditors will attend a meeting on Mar. 31.''
Regan said TrentonWorks could either be sold to a new operator or its assets sold off.
If that doesn't happen, he said the plant would be liquidated and the creditors paid.
''Whether it's receivership or bankruptcy it really doesn't change anything for former TrentonWorks employees,'' he said.
