August 18th, 2010
As inevitable as the tide, the Minnesota winter snows, mosquitos, death and taxes… This is way too predictable! Charlotte Neigh, of Citizens Against the Mesaba Project, is dead on again with her trajectory of Excelsior Energy’s weaseling out of their financial responsibilities in this Mesaba Project boondoggle. A deadline is approaching where Excelsior Energy has to make a payment on its financing from the Iron Range Resources Board:
A little birdie just sent this, literally hours after Charlotte had mentioned that the next payment was coming due and wondering what they were going to pull this time to get out of it (it’s ALWAYS something):
“Development plans originally contemplated that the project would have been under construction prior to 2010 and repayment would have begun,” IRR Commissioner Sandy Layman wrote in a memo to board members requesting the extension of the loan and delay in interest payments. “Sufficient funds are not available to meet repayment requirements under the existing loan terms at this time.”
If approved, the new loan agreement will require annual principal payments of $100,000 due Dec. 31 beginning this year and running through 2017. Interest on timely payments will be figured at 5 percent for the preceding 12 months. With IRR approval, Excelsior can repay all outstanding principal before Dec. 31, 2017, at a reduced interest rate.