Loan forgiveness

Dear editor:

In June 2017 Resolute Forest Products disclosed the governments waiver of the repayment of the 22.5 million dollar loan in its U.S. Securities and Exchange filings. In 2019, the MNRF refused to answer Fort Frances Councillor Douglas Judson’s questions related to this waiver, citing confidential financial information the MNRF had received from Resolute. The June 19, 2020 edition of the Thunder Bay Chronicle, includes an article written by Carl Clutchey, that explains why the MNRF agreed to forgive the repayment of the 22.5 million dollar loan.

The MNRF believed Resolute had made efforts in good faith, to sell the Fort Frances mill after its permanent closure in May 2014. At that time the MNRF should have put the wood supply allocated to the now permanently closed facility out for competitive bids. Instead the MNRF chose to support the position that the wood supply allocated to the Fort Frances facility remained the “property” of the Company and any potential buyer must negotiate with Resolute to access these forest resources. The forest, including the harvested forest resources remain the property of the Crown until all fees are paid.

In the same article the MNRF spokesman indicated the Ministry would continue to work with the Town of Fort Frances to support investment and find new opportunities. The ongoing demolition of the Fort Frances mill is evidence of how the MNRF has worked with the Town of Fort Frances.

Next, we will look at the impact of the MNRF’s actions or inactions on the future of Fort Frances and the surrounding First Nation and Metis communities.

David Kircher