Laval recovers half of what it was to contribute to Hexagon Group

Photo archives Agence QMI, TOMA ICZKOVITS
The mayor of Laval, Marc Demers

QMI agency

Wednesday, march 7, 2018 19:56

UPDATE
Wednesday, march 7, 2018 19:58

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LAVAL | City of Laval has reached an agreement with Hexagon Group in order to save $ 4.5 million over the $ 9.5 million that the company claimed for 13 contracts resurfacing and renovations of two drinking water plants.

Last year, the City had placed $ 9.5 million in escrow, the time to reach agreement with the company which is under the protection of the bankruptcy and insolvency act.

Under the agreement out of court was ratified by the Québec superior Court, the City will recover eventually $ 4.5 million on the amount that it was supposed to Hexagon Group. In sum, it will pay that $ 5 million on the $ 9.5 million owed to the company.

“This settlement with Hexagon Group shows that the City of Laval is committed in its efforts to recover the sums wrongfully diverted as part of the grant or the management of its public contracts. In the end, the money recovered will benefit all of the Residents”, said mayor of Laval, Marc Demers, in a press release Wednesday evening.

The City intends to use the amount saved to pay cash for the property, thus avoiding having to make loans.

In 2013, the Hexagon Group had made the acquisition of businesses of the entrepreneur Tony Accurso. The company, however, is placed to protect itself from its creditors about three in later, in February 2016.

The amount of $ 5 million obtained by Group Hexagon on the part of Laval will be used to pay the creditors of the company.