FAME board delays vote on $25M Thermogen loan
Courtesy Thermogen Industries
An artist's impression of Thermogen's future biocoal plant in Millinocket.
The Finance Authority of Maine wants stronger financial assurances from the Millinocket-based torrefied wood company Thermogen Industries before approving a $25 million loan the company said is necessary to get its new operation off the ground.
The Bangor Daily News reported the FAME board voted to postpone a decision on the requested $25 million loan guarantee for the company during a meeting Monday, at which Gov. Paul LePage urged state support of the loan. LePage said the loan could help the state become a frontrunner in the new industry of torrefied wood.
The board voted 6-5 to delay action on the loan and several board members said they supported the company’s concept but wanted more financial guarantees that would demonstrate the company’s ability to repay the loan. If the company were to default on the loan, the state would tap its operating budget to repay its guaranteed portion of the loan.
Millinocket Town Manager Michael Madore also attended the hearing Monday to seek support for the loan that he said could help turn a tide of economic hardship for the town, which he said now has tax liens on 308 properties.
The company and the state finance authority will continue to negotiate up to an Oct. 17 meeting, when the board will again take up the company’s loan request.
Chris Howard, an attorney for Thermogen’s parent company Cate Street Capital, told the FAME board Monday that some of the agency’s conditions, including collateral requirements, could scuttle the deal.
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