Mariner Seafoods gets new lease on life

The Montague-based fish processor Mariner Seafoodswill be up and running when the 2010 lobster fishing season opens Saturday.

Company president Mark Bonnell and lawyers representing the company's creditors were in Prince Edward Island Supreme Court Tuesday to announce the plantwill be leased to a company called Chestnut Ventures, whichwill take over operations of the lobster- and crab-processing firm.

It's not clear who owns Chestnut Ventures.

Mariner Seafoods, whichhad been on the brink ofbankruptcy, owes more than $11 million toseveral creditors, including $2 million to Active Communities Lending, $1 million to GE Capital and almost $500,000 to Innovation PEI.

Much of the money is owed to Bonnell himself. Court documents show he loaned his company more than $5 million.

The agreement, seen as a compromise between the fish processor and its creditors, means the company won't have to sell off its assets

More than 200 employees will be able to keep their jobs at least for now.

The parties will be back in court Thursday morning to finalize the agreement.

In February, P.E.I. Supreme Court Justice Wayne Cheverie granted Mariner Seafoods more time to try to find a buyer in order to get the processing plant running in time for the spring lobster season.

Mariner Seafoods is one of the biggest employers in the Montague area.