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City council may loan $15M to New Skeena


April 8, 2003
By Pulp & Paper Canada

The City of Prince Rupert is seriously considering lending $15 million to New Skeena for its pulp mill start up.

The City of Prince Rupert is seriously considering lending $15 million to New Skeena for its pulp mill start up.
New Skeena CEO Dan Veniez said the company still needs financial backing to be able to start up the mill in June and deliver to customers in July as promised.
The CEO said he would offer a 3% share to the city and a seat on New Skeena’s board of directors, as well as an interest rate of prime plus 5% for the $15 million loan, so that the town would be paid in full within two years.
However, if New Skeena fails to repay the money, the city would end up owning the Terrace sawmill, which would likely end up as security to the lender.

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