PORTLAND, Maine — Nova Star Cruises received a $5 million advance from the province of Nova Scotia as a stopgap measure to cover operating costs while the company works to secure a line of credit for that amount, according to a statement from the province.
The province has so far given the company $19 million of a $21 million commitment it planned to distribute over the course of seven years. The loan from the province would be forgiven if it meets certain terms specified by the province and if it continues to operate the ferry.
Dennis Bailey said in an email to the Bangor Daily News he did not have a timeline for the company to secure the $5 million operating line of credit.
“It’s a complex situation involving several financial institutions,” he wrote. “[Gov. Paul LePage’s] office has been helpful in assisting, as they pledged to do, and we’re grateful for their cooperation.”
The governor said last July, when the company was competing for the provincial subsidy, that Maine would assist in securing a $5 million line of credit and provide the company with help marketing the service.
The company was expected to spend $10.9 million in startup costs in the first year and receive the rest of the $21 million in smaller installments over seven years.
“The company has encountered some early challenges, and we are working with it to get over the bumps of a first season toward long-term success,” Michel Samson, Nova Scotia’s minister of economic and rural development, said in a prepared statement.
The province previously advanced the company $2 million for a bond required by the U.S. federal government, which Samson said he expects the company to pay back when it has the means.