Inuvialuit poured $32M into NTCL, which borrowed many millions more

Northern Transportation Company Ltd. (NTCL) has borrowed more than $100 million in recent years from banks as well as its owner,the land claim organization for the Inuvialuit region, accordingto court documents filed late last week.

Now the cash-strapped companyplans to dig even deeper into its owner's pocket to ensure the 2016 community resupplycan happen.

On Wednesday, the Court of Queen's Bench of Albertagranted NTCLprotection from its creditors as the companyseeks to restructure itself in time for this summer's shipping season, which typically kicks off in June.

NTCL said last week it lacked the ability to carry out the season unless a restructuring of the company takes place.

Court documents submittedbefore the protection was granted show that NTCL'sowner, the Inuvialuit Development Corporation (IDC) throughaholding company, Norterra loanedNTCL$32.4 million in recent years,with no fixed term of repayment.

IDC is the economic development arm of theInuvialuitRegional Corporation (IRC), the region's land claim organization.

IRC'sMarch/April newsletter to beneficiaries makes no mention of the substantial financial aid provided to NTCL.

Inuvialuit to loanNTCL up to $9.3 million more

In 2014 IDCboughtNunasiCorporation's share ofNTCLto become the sole owner of the marine shipping company, which hasn't made money in nearly a decade.

Though NTCLposted a net lossof $5.4 million from its operations in 2015, the support from IDC is poised to keep coming.

The Alberta court authorized IDC to giveNTCLup to another $9.3 million in financing under a short-term loan.Themoney will partly be used to pay for the company's day-to-day operations during the 2016sealift.

While the annualcommunity resupply accounts for only 15 per cent of NTCL's overall revenues, many remote N.W.T. communities rely solely on the summer sealift for large, otherwise-difficult-to-transport goods and materials. Norman Wells, for example, is waiting on the materials to hard-surface several community roads.

"NTCLand IDC consider it critical thatNTCLcontinue as a going concern, both to preserve its value and to ensure that Northern residents have critical supplies," KyleBarsi, NTCL'svice-president of finance, wrote the court in an affidavit.

Banks, N.W.T. gov't owed money

NTCLalso owes, and isin default on, a $72million loan from the Bank of Nova Scotia, HSBC Bank of Canada and Canadian Western Bank, although those banks have agreed not to demand repayment for the moment.

NTCL also owes $9.7 million to Vancouver-based ITB Marine Group Ltd.

In 2013, NTCL agreed to purchase 15 unspecifiedvessels from ITB through monthly payments of $233,000 until 2018.

"NTCL made the payments for February and March 2016, but as these payments were made later than usualITB has claimed NTCL is in default, which NTCL disputes," wrote Barsi.

Arecently-formedNTCL subsidiary that sells fuel to communities in the N.W.T.'sMackenzie Delta region also owes money to the territorial government.

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Beaufort Delta Petroleum Corporation has borrowed $1.9 million from the Northwest Territories Business Development and Investment Corporation, with only $100,000 of that paid back so far. The corporation is owned by the territorial government.

Bonuses to be paid to small number of employees

NTCL employs 17 people on a full-time basis and up to 150 more people during the summer shipping season, which typically lasts from June to October.

Last week's court protection order also allowed NTCL topay bonuses to eight "key"employees the company does not want to jump ship.

The individualbonuses, which could total a maximum of $100,000, range from 10 to 25 per cent of each employee's salary.

Details on which employees will get a bonus were sealed at the request of NTCL.

The employees slated for bonuses "have valuable corporate knowledge that cannot be easily replaced" and/or "are engaged in relationships with key clients," according to a report from NTCL's monitor, PricewaterhouseCoopers.

Nathan Graham, the Inuvialuit Regional Corporation's chief corporate officer, told CBC North last week he was "not sure" if the company will have to lay offemployeesunder its restructuring effort.