Long-time construction business the Hard Rock Group is going through some hard times.

On Friday, the 50-year-old paving business announced it had been granted a court order under the Company’s Creditors Arrangement Act to facilitate a financial restructuring of its operations.

“Our goal is to refocus our business, to make it more efficient and profitable for the benefit of our employees, our creditors, Port Colborne and the Niagara region,” president David Semley said in a written statement.

The application for a restructuring was granted by Justice James Spence of the Supreme Court of Ontario, after negotiations with the major secured creditors of the companies which include Caterpillar Financial Services Inc. and GE Capital.

Semley said plans are being developed and implemented which will see an immediate return to work for an undisclosed number of laid-off employees and a more gradual return for the remainder.

The application is supported by the Labourers International Union of North America and the International Union of Operating Engineers, which represent the company’s trade workers.

Labour relations at IUOE and LIUNA were not returned by press time.

The Ministry of Transportation is in the process of settling a claim with the company over cost overruns on the Henley Bridge project, which was completed last fall in St. Catharines, said ministry spokesperson Bob Nichols.

The initial tender for the project was $15.2 million and the ministry has already paid out in excess of $15.2 million, Nichols said.

“It’s not unusual to have claims in a major contract like this one,” Nichols said. He said there are often outstanding issues and the ministry is at the stage where they are analyzing the data and invoices from the project.

Quarry and construction operations were expected to “ramp up” as early as Monday.

The company recently encountered financial difficulties attributed to significant cost overruns on one of the company’s major projects. Hard Rock is now attempting to recover the costs.

Semlet would not provide comment on the project or how many workers have been laid off by the company.

The CCAC is a process in which companies have the opportunity to restructure, both financially and operationally, subject to court supervision through an appointed monitor.

Hard Rock is a 50-year-old company engaged in the businesses of asphalt paving, civil construction, recycling and construction material supply.
The granting of the CCAC allows the company to focus on improving operational performance, rationalizing its equipment fleet and other surplus assets as well as eliminating poorly performing operations.

“Hard Rock believed that it has human resources, physical assets and committed future work available to enable it to effectively restructure,” Semley said.

“Ultimately Hard Rock will emerge from this restructuring with a renewed operational focus, and a secure place in the economy of Port Colborne and the Niagara region.”

Hard Rock Paving is the city’s largest employer, employing 250 workers, according to the City of Port Colborne’s website.