NTCL sets course for sale of once-flagship tugs

Northern Transportation Company Limited (NTCL)is preparing to sell some vessels, including some of its former flagship tugs,to a construction company in Newfoundland.

The struggling N.W.T.-based shipper is seeking court permission to sell the MVAlex Gordon, the MVJim Kilabuk and the MVKeewatin to R.J.G. Construction in St. John's.The money from the sales is needed to help NTCL chip away at a massive $130-million bill to a syndicate of banks.

• The trouble at NTCL: 5 things you need to know

In 2009, the MVKilabukand MVAlex Gordon assisted a British Petroleum seismic ship in the deep waters of the Beaufort Sea.

But the ships were not used during this past summer's now-completed sealift season on the Mackenzie Riverand are currently stashed in various parts of Nunavut, where NTCL hasgradually reduced service overthe last several years.

Another "non-core" asset, a barge, is being eyed for sale to Transport Desgagnes Inc., which shares the same parent company as Nunavut Sealink and Supply Inc., one of NTCL's Nunavut sealift rivals in recent years.

Meanwhile, NTCL's court-appointed monitor, PricewaterhouseCoopers Inc., says NTCL has settled on a successful bidder for some of the company's current core assets.

"The monitor is optimistic that this agreement will be finalized in the next several weeks," wrote Sean Fleming of PricewaterhouseCoopers in a report filed in Alberta court last week.

• Only half of NTCL's vessels expected to sell: report

NTCL has previously said that it only expects to find a buyer for some of its core assets, as opposed to a buyer willing to take over the whole company.

Pensioners court hearing delayed

A court hearing to hear arguments about why NTCL pensioners should or shouldn't get first dibs on the proceeds of those sales has been delayed.

The hearing, which was expected to take place on Oct. 26, has been postponed to some time in early 2017.

Simon Archer, a lawyer with Koskie Minsky, the firm representing more than600 former and current NTCL pensions, said the delay was caused when NorTerra, the Inuvialuit-owned parent company of NTCL, sought its own lawyers over those representing NTCL.

"That counsel was obtained in early October, but, we understand, was not able to be prepared in time for the October hearing date, and so new dates were sought with the presiding judge," said Archer via email. "So far, a new date has not been confirmed."

• With no buyer in sight, NTCL looks to cut pension payments

Pensioners are concerned because NTCL wants to cut back on its payments into the pension plan.

The plan's assets are valued at $100 million but the plan is still short about $20 million.