Wrangell Seafoods sells to Trident

Ryan Long

April 9, 2009.

WRANGELL – After Trident rescinded its offer to purchase Wrangell Seafoods Inc, (WSI) it was unclear as to what the future would hold for Wrangell, or the processing plant employees.

The deal was initially called off, according to a letter from Trident President Paul Padgett to Doug Roberts, due to a failure to disclose that the United Industrial, Service, Transportation, Professional and Government Worker’s Alaska Fisheries Division indicated that WSI had violated a National Labor Relations Act measure, failed to respond in a timely manner, and that that complaint could be passed on to Trident after the sale.

Though the initial purchase price of $4.35 million was maintained in bankruptcy court, Alaska Growth Capital has agreed to pay $700,000 to Trident Seafoods in order to address issues arising from the inability of WSI to close the sale.

According to current court documents the WSI facilities will begin operation by Trident in June. Had the agreement not taken place, it would appear that WSI would not have been able to operate in 2009 without outside financing.

WSI had filed for bankruptcy last January, and many had hoped that the Chapter 11 reorganization would be completed by March 20 in order that the summer season could take place with little to no interruption.