$140M debt, which NTCL can’t repay, could spread to Canadian North – CBC

Dec 16, 2016

Other Norterra subsidiaries guaranteed NTCL’s debt… and are legally obligated to repay it

With Northern Transportation Company Ltd. unable to pay back an overwhelming majority of its debt, the balance may now fall on other Norterra companies, including Canadian North.

Norterra, NTCL’s Inuvialuit-owned holding company, has borrowed $140 million (up from a previous estimate of $130 million) from a trio of banks: the Bank of Nova Scotia, HSBC Bank of Canada and Canadian Western Bank. Norterra advanced money from those loans to subsidiaries like Canadian North and Weldco-Beales Manufacturing.

According to an August 2016 report from NTCL’s court-appointed monitor, all of the Norterra subsidiaries guaranteed that debt and “are legally obligated to pay the full amount of Norterra indebtedness.”

Read More: http://www.cbc.ca/news/canada/north/debt-canadian-north-ntcl-1.3898484