Developer of Colchester County site seeks creditor protection
The future of a $90-million wind energy project in Colchester County is in doubt after its struggling Calgary developer sought creditor protection in Alberta on Tuesday.
EarthFirst Canada Inc.’s initial attempts to find a buyer for the wind company have failed and it sought protection to give it more time to attract a suitor, EarthFirst president Linda Chambers said in a telephone interview from Calgary.
"EarthFirst’s efforts to pursue strategic alternatives have been severely hindered by the unprecedented crisis in the global financial markets, which has impacted on EarthFirst’s ability to raise financing or to complete a sale of the company," the firm said in a statement released Tuesday.
Ms. Chambers said the economic crisis is "paralyzing" the wind energy industry and many other sectors.
"Part of the problem is the credit markets globally have collapsed and it’s having an impact on people wanting to make an acquisition."
EarthFirst owns two projects in British Columbia as well as the proposed 45-megawatt Nuttby Mountain wind energy project in Colchester County.
Despite the turbulent times, EarthFirst will continue its day-to-day operations and hopes to find a buyer by early 2009 that will proceed with the 22-turbine Nuttby Mountain project, she said. "It is scheduled for completion in late 2009 and at this stage we think it can be done, depending on the purchaser."
EarthFirst has submitted the Nuttby project for a federal environmental assessment but has been unable to negotiate deals for wind turbines and warranty agreements.
The proposed development would be located about four kilometres north of the village of Nuttby and six kilometres east of Earltown.
The turbines could generate enough electricity to power about 15,000 homes.
This spring, Nova Scotia Power announced it would purchase electricity from the Nuttby Mountain project for an undisclosed price.
On Tuesday, the province’s largest utility was awaiting word from the Calgary company.
"I think we need to hear from EarthFirst," NSP spokeswoman Margaret Murphy said.
"We owe it to them to hear what they have to say."
Ms. Murphy said EarthFirst is "clearly signalling" it is dealing with a global issue that a lot of companies are trying to cope with these days.
In the past year, NSP has signed power purchase agreements with five other companies for new wind-generated electricity.
EarthFirst announced in March it would buy the Nuttby Mountain project from Atlantic Wind Power Corp. and its partner, Cobequid Area Wind Farms.
At the time, EarthFirst paid $75,000 cash and $374,000 in shares for the Nuttby project. The deal went through in May, when shares were trading in the range of $1.80.
The stock crashed this summer to 22 cents a share and on Tuesday was trading at seven cents a share.
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