Coal Mine Getting Deeper

A published list of 341 creditors owed a total of $73,935,635.64 shows that the coal mine is running a little behind in their bill payments.

Ten companies are owed over a million dollars, most noteworthy being HSBC Bank Canada with a $37 million claim. There are no locals on the list, but 14 companies in Princeton are owed a total of $344,651.30. In the greater picture that may look like loosing your change down the back of the sofa, but it is money the local economy can ill afford to lose.

For a long time it was hoped that Coalmont Energy would be able to get back on their feet. However, a little over a month ago when Kerry Leong, the company president, filed an affidavit in an attempt to get a stay of proceedings from creditors, that started to look much less likely. Now the company is filing a proposed sales process schedule in the Supreme Court which has been approved by the lawyers representing the petitioners. That is, the people who are owed money, approve of the sale of CEC. Who exactly will end up operating the mine after that is far from certain. The sales schedule ends March 14.

What’s worse, Vitol Inc., the company with whom CEC had an agreement to buy all the coal from the mine, has filed an order to terminate the contract. They have not received the amount of coal which they were promised, and under the agreement Coalmont Energy will be owing them half a million dollars. In fact the agreement stipulates four million dollars on default. This proceeding will likely succeed, and thus any new mine owner will have to find another buyer. It seems that with every step forward this venture is getting even deeper in the hole.    §

One thought on “Coal Mine Getting Deeper”

  1. Hi Ole. Thanks for the updates. I would also like to see the coal mine resume production in a profitable and environmentally safe manner. It can be an asset to the community through jobs, and to the province via taxes. As a minor correction, there is one local on the list of creditors owed. A Tulameen resident/business owner. It is proof of the ripple down effect when a significant project fails.

Leave a Reply

Your email address will not be published. Required fields are marked *