tbnewswatch.com file photograph
FILE -- Bending Lake Iron Group CEO Henry Wetelainen
THUNDER BAY -- An area mining company that expected to bring 300 jobs for 50 years to this area could be heading to receivership.
Bending Lake Iron Group is sitting on more than 335-million tons of iron ore near Atikokan. But according to numbered company 2403177 Ontario Inc., the company's only secured creditor, it hasn't made a payment on its almost $2.3 million loan since 2012. With interest that adds up to more than $3.1 million.
According to court documents there were several potential investors in the company, which now has only three board members, but none have given letters of interest and no final offers were made.
"As the value of iron ore is currently decreasing, which will negatively impact the value of the Debtor and its assets, a sale (and potential liquidation) through a receivership process appears to be the most beneficial outcome," the application states.
The matter was in court Thursday but the company's lawyer had it adjourned until Sept. 11.