Neptune Technologies & Bioressources Inc. today announced that it has received an additional $5 million to go with a $6.7 million payment the company received in May. The total in $11.7 million in payments is in compensation for an explosion and fire on Nov. 9, 2012 that heavily damaged the company’s production facility in Sherbooke, Quebec and brought production of the company’s omega-3 krill oil to a halt.
Neptune said it had insurance in place covering, among other things, property damage, business interruption and general liability up to specified amounts and subject to limited deductibles and certain exclusions. Total compensation from insurance could runs as high as $15 million to $20 million, said Andre Godin, Neptune’s CFO.
Neptune is in the process of rebuilding its plant at Sherbooke and has pursued third party production arrangements for krill oil in order to supply customers in the meantime. The company has not yet announced conclusion of any third party agreements.