An out-of-court settlement will see the Prince Edward Island government recover $1.5 million from an outstanding loan given to the former owners of a lobster processing plant that was closed more than three years ago.
The province launched a lawsuit in June 2011 in an attempt to recover $9.75 million of an unsecured loan that was still outstanding when Ocean Choice International closed its plant in Souris.
The company closed the plant in April 2011, citing operational losses and throwing about 300 employees out of work.
Innovation Minister Allen Roach says the settlement is based on legal advice that the court case could take years and result in millions of dollars in costs with no certainty the province would be successful.
Roach says the deal clears the way for the plant's assets to be maintained and put back into use.
He says an announcement concerning the processing facility will be made with the Souris Harbour Authority on Wednesday.
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