NTCL cuts 2 Nunavut communities from sealift roster

NTCL has cut two communities in Nunavut's Kitikmeot region from its summer 2016 sealift roster.

Taloyoak and Gjoa Haven were taken off the schedule after a review to streamline operations, said Nathan Graham, the chief corporate officer for the Inuvialuit Regional Corporation, which owns NTCL parent company Norterra.

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"Doing a sealift on its own without any other sort of cargo underlying it, such as fuel, is incredibly expensive," said Graham.

"When we looked at those two communities and we believed that they were able to get supply from other suppliers, the criticality of us going into those communities wasn't the same."

Cambridge Bay and Kugluktuk will continue to receive deliveries, however.

"Most of the communities that have been historically supplied will be supplied," said Graham.

Company owes property taxes to Hay River

NTCL received court protection from its creditors in late April under the Companies' Creditors Arrangement Act (CCAA).

The company owes a total of $137million to dozens of groups including $685,000 to the Town of Hay River, where NTCL's operational headquartersare located.

Brad Mapes, the mayor of Hay River, says NTCLowes the town property taxes and land lease payments dating back a year.

"Obviously it's a worry," said Mapes. "We understand they're trying to work through it."

NTCL is currently restructuring itself so that it can deliver 2016 fuel and cargo shipments to Nunavut's Kitikmeot region and along the Mackenzie River in the Northwest Territories.

Its parent company, Norterra, has also undergone some belt-tightening.

Graham confirmed Norterra has eliminatedfive jobs from its Edmonton office in recent months.

Canadian North assets not in danger

Part of the debt NTCL carries is from a $72-million credit agreement Norterra has with three banks money to fund operations not just at NTCL but at other Norterra subsidiaries like the airline Canadian North.

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According to an affidavit filed by NTCL, the credit agreement is secured not only by assets belonging to NTCL but also "many of the wholly-owned direct subsidiaries of Norterra."

But when asked if planes or otherassets of Canadian North arein danger of being seized should the restructuring not go well, Graham said, "Not at all. Absolutely not at all.

"The lending agreement that we're talking about is not something that's in jeopardy or would cause problems during the CCAA. Norterra is in full compliance and has paid and continues to pay all amount due under that credit agreement."

Graham added that NTCL could not have proceeded with its restructuring without the blessing of the banks in thefirst place.