Jim Heath, president of Entegrity, leaves the Supreme Court of Prince Edward Island on Friday. He’s seeking a further extension from the courts in an effort to get his company’s fiscal house in order. If he doesn’t get it, the P.E.I. wind turbine maker will be declared bankrupt. A decision is expected next week.Guardian photo by Wayne Thibodeau.
Clock ticking on firm
WAYNE THIBODEAU The Guardian
The province has turned down a request by Entegrity Wind Systems for an additional $350,000 loan.
Jim Heath, the U.S. president of Entegrity, wanted the loan from P.E.I. Business Development so he could pay his employees the thousands of dollars they’re owed in back pay.
The troubled wind turbine company already owes P.E.I. taxpayers $370,000.
The information came to light during a Supreme Court hearing Friday in Charlottetown.
Entegrity was back in court seeking a second extension, which would give the company another 36 days to get its fiscal house in order.
Justice Wayne Cheverie said he will rule on that second extension sometime next week.
If it doesn’t get that extension, Entegrity will be forced into bankruptcy.
The province says it won’t get into discussions about why it turned down Entegrity’s request because the case is still before the courts.
In court Friday, Kevin Kiley, the lawyer for Entegrity’s Toronto-based bank, argued that a further extension will only sink Entegrity and its bank, Mercantile, into a bigger hole. He said Heath is simply “stringing everybody along”, adding that secured and unsecured creditors and former employees of Entegrity have been “hung out to dry.”
Despite Heath’s assurances, Kiley said he has been unable to secure a promised $10-million investment in the company, he has been unable to secure a loan with the P.E.I. government, and the company is unable to meet its customer’s needs because it now only has two employees on P.E.I.
Entegrity owes millions of dollars, including $3 million to its Toronto-based bank.
Part of that $3 million is guaranteed by Export Development Canada, which means Canadian taxpayers could be on the hook for most of that loan if the company goes into bankruptcy.
Pamela Williams, the lawyer for Entegrity, argued this is not a second extension — but a first extension — considering Entegrity could not get access to its building for part of the first extension.
That’s because Entegrity owed back rent. That bill has now been paid.
Williams admits that Entegrity has not only stumbled and tripped, but fell hard.
But she said Heath is working hard, sometimes up to 16 hours a day to get his company back on its feet. She said he simply needs more time.
“The reality is there is a lot going on in this time period,” said Williams.
“What this company has been through is astonishing and unfortunate,” she added.
Justice Cheverie agreed to a short extension, called a bridging extension, which would allow Entegrity to continue to operate until he makes his decision next week.
The last extension came to an end Oct. 9.
In a brief interview, Heath told The Guardian this will be his last request for an extension.
“It’s my opinion I will be successful,” he said as he made his way out of the Charlottetown courthouse.
Kiley said Mercantile also believes the P.E.I. wind turbine maker can be successful, but under their watch — not Heath’s. He said they want to get Entegrity going again and sell it as a going concern.
“There is little value in the company unless it’s a going concern,” he said.
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roter club from p.e writes: can some one sing a little song about poor little gagno who couldnt get enough of those hydramorphone who had to line her pants with v.l.t quid when we get caught just cry pill pill o pill ure just over that hill let me stop and beat up an old lady to make sure i have enough fo that pill o pill just up over that hill just say you need a pill dont dare say im a theif
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joe from pei writes: Give it up Jim, get a real job.
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jean hallis from summerside, pe writes: here we go with a white elephant project that need support fron our TAX dollars. Myview is that if the contractor cannot fuffil his part then go AWAY and let pei expertise finish the job.
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wow from PEI writes: I guess the heat was finally too much for the government on this one.
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Watching From Albany from PE writes: I have been watching this with great interest and think that Mr Heath should be given the extension. I am sure that with the key people he has gotten back with him now, they can get this company back on its feet again. Best of luck.
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Gerry from pe writes: Here we go again. Another company goes belly up and at the taxpayers expense.
It would be truly interesting (scarey actually) to know how many similar risks WE have lost money on over the past 20 years.
What is the criteria required for investing taxpayers $ into foreign investments? We, as the cost bearers are only made aware of how our money is/was spent when it's bad news. Where's the report card, status or audit report?
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dear gerry from PEI writes: You're absolutely right - it would nice to know how much money the Province has lost in forgiven loans, and in grants and defaults from companies - and how much money was provided in loans that were paid back and grants where the company succeeded. (Then of course there are the loans to companies that don't need the money) How do we know what's working and what's not without transparency? But - nope, you can't get it. Private. So much for freedom of information.
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Wayne MacKinnon from Marshfield, P.E.I. writes: dear gerry from PEI writes: You're absolutely right - it would nice to know how much money the Province has lost in forgiven loans, and in grants and defaults from companies - and how much money was provided in loans that were paid back and grants where the company succeeded. (Then of course there are the loans to companies that don't need the money) How do we know what's working and what's not without transparency? But - nope, you can't get it. Private. So much for freedom of information.
Get involved in forming the new Island Party and find out the answers for all Islanders--- save the few dozen people who truly exploited the PNP Program and do not want Islanders do know how they get ahead in life.
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Wayne MacKinnon from Marshfield, P.E.I. writes: wow from PEI writes: I guess the heat was finally too much for the government on this one.
Let this be a demonstration to Islanders the power of joining together to protect whatever is important to each individual voter.
Let this empower Islanders to identify the fact, if all Islanders join together to change the corruption that is rampant in the Ghiz administration.
The number of class action suits against this little Province is staggering.
Every citizen has one vote,use the vote wisely,ask yourself; Am I happy with my present lifestyle? Why do I pay out so much for personal taxes, property taxes, sales,gas, cigarettes,auto,school fees,etc?
Why do the 13 families continue to receive $600-700 million in untendered contracts? Resulting in the taxpayers being overcharged by $100-$150 million.
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Wayne MacKinnon from Marshfield, P.E.I. writes: Personally, I believe Cheverie should extend the timeline to find investors for this company.
With all the PNP money the Chosen Ones received, one would think they would invest in a local company and build the Island economy. How they like to publicly express how much they love the Island.
Maybe they are waiting to scavenge the company from the bankruptcy courts.
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Kibitz from PEI writes: Taxpayers have inherited the wind .
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Juke Streudel from Charlottetown, PEI writes: I guess when a government finally sees they are messing up every aspect of a sector they call a development priority- renewable energy- it it time to smarten up a little bit, at least for the sake of appearances. Absolutely, public opinion worked here, Allan Campbell looked ready to give them some more cash a few weeks ago.
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Donna from Charlottetown, PEI writes: It's past time for a new Island Party which would represent us with honesty, integrity and accountability. It's a great idea, Wayne MacKinnon from Marshfield! We'll never get anything but spin, deception, corruption and mismanagement unless we take control of the backroom system and select and run our own candidates. I really hope to see such a party. I'll vote for it, and I'm sure there are thousands of other Islanders who will also.
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Former EWSI Employee from PEI writes: Finally the Liberal's do something right. Congrats guys. I have some faith in this government again.
Entegrity under Jim Heath will never be an Island company and will never last here.
Funny how the original few were always going to be looked after and now they are all out the door and unpaid. After silly promeses of company shares warrants that likely never existed.
Good bye Jim, it was a blast while it lasted but its time to move on. Like you say, the phrase 'its nothing personal' is bullshit, its always personal
And to Watching in Albany , did Jim give you a pay cheque yet? gee I could have one too. Maybe someday....not likely though.
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