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:

MCGP Exhibit 5023 – IRR & Excelsior Convertible Debenture Agreement


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):

Published August 18 2010

Excelsior asks for more time to repay Iron Range loans

Excelsior Energy’s plans to build a coal gasification power plant known as the Mesaba Energy project on the Iron Range have suffered numerous delays.

By: Steve Kuchera, Duluth News Tribune

The Iron Range Resources Board will consider a request Thursday to give Excelsior Energy more time to pay back nearly $9.5 million in loans.

Excelsior’s plans to build a coal gasification power plant known as the Mesaba Energy project on the Iron Range have suffered numerous delays.

“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.”

The IRR has two outstanding loans with Excelsior: one for $1.5 million approved in December 2001 and one for $8 million approved in June 2004. Excelsior has paid back $45,038 of the loans’ principal.

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.

In exchange, Excelsior would agree to pay the IRR 5 percent of the proceeds from any sale of equity in the Mesaba Energy project in excess of Excelsior’s liabilities from the project.

One Response to “Excelsior Energy stalling payment to IRR… AGAIN”

  1. kurt christopherson Says:

    Everyone-Check out the blog on Minnesota Brown by Aaron Brown done on August 19,2010.He has hit right on the head about what is wrong with this project,the politics and dim-witted people that continue to let this disaster hang on life-support.Thanks Kurt

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