A Yellowknife MLA has asked the territory’s industry minister to provide a zero-percent interest loan to NWT businesses owed money from Arctic Canadian Diamond Company or ACDC.
In the Legislative Assembly on Monday, Range Lake MLA Kieron Testart argued the proposed zero-percent interest loan would help businesses “secure their cash flows, which would prevent further layoffs until there is a resolution of these court proceedings.”
ACDC, the Burgundy Diamond Mines subsidiary that owns the Ekati diamond mine, is under CCAA creditor protection, allowing it to continue operating and to restructure while court proceedings are underway.
Often unpaid invoices can become part of the insolvency process, meaning companies owed money may not receive any payments. When a company cannot pay its debts, unsecured creditors are generally paid last.
ACDC currently owes roughly $380 million to hundreds of lenders including around $287.3 million in secured debt and $93.3 million in unsecured claims. It owes roughly $10 million to the NWT government.
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Industry minister Caitlin Cleveland told Testart that she is willing to talk to Prosper NWT – the GNWT’s economic development agency – to gauge the need for such a loan to be implemented.
Cabin Radio tried to confirm whether Prosper NWT has ever issued an interest-free loan before, but did not receive a response before publication.
Cleveland said that the GNWT has heard from the business community that they want the ability to upscale through loans and to train workers.
In her response to Testart, Cleveland referenced a federal and territorial joint agreement to provide the NWT with $1.5 million to help retrain workers in industries, like mining, that are impacted by tariffs and global market shifts. The funding is also meant to help businesses access employment services and financial assistance if needed.
