NTCL selling off some of its barges, property in Hay River

Northern Transportation Company Limited (NTCL) is taking some initial steps to stave off its creditors, and plans to sell off non-essential barges and property in Hay River.

The struggling company was placed under creditor protection earlier this year, citing about $71 million in debt to several banks.

According to the latest report filed earlier this month by NTCL's monitor, the company has already sold two barges that were stashed on the East Coast to Les Barges de Matane Inc., a Quebec company.

Now the company wants to sell even more assets it says are not needed to complete this year's resupplyto N.W.T. and western Nunavutcommunities, including:

• one barge located in Quebec
• two barges located in Newfoundland
• three barges located in the N.W.T.
• the MVMarjory, which is located in the N.W.T. and has previously served the Western Arctic

Don Arnault, a training advisor at the EkatiDiamond Mine, has made an offer for several NTCL-owned vacant lots in Hay River. The lots are beside ones owned by Arnault.

NTCL owes $685,000 in property taxes to the Town of Hay River. According to the monitor's report, the town will be paid after the sale of the lots to Arnault. Both the vessel and property purchases need to be approved by the Court of Queen's Bench of Alberta.

All told, NTCL has about 80 vessels that are not critical to its business. While NTCL is asking that the purchase prices remain confidential, the company is asking the court to allow it to make quick sales of assets individually worth up to $300,000. Such sales are currently limited to up to $100,000.

NTCL is also trying to find buyers for its core assets, or even its entire business. The monitor says NTCL has garnered "considerable interest," with non-disclosure agreements signed with 39 parties.

Revenue projections for the period from late April to late July fell far below expectations. The company hoped to generate $7.2 million from shipyard, deck (resupply), fuel delivery and charter revenue, but only made $4.7 million.