http://www.thenorthernview.com/news/164502756.html
Just sayin’…
[quote=“bubbasteve735”]http://www.thenorthernview.com/news/164502756.html
Just sayin’…[/quote]
Moving the thread back as we now have some confirmation. 
Signed and sealed and delivered as of last Friday, right?
So I did a little research and was shocked to find out that sun wave was caught attempting to defraud banks in china for 200 million with the purchase of skeena and was busted by “bank informers”, this is news to me first I have heard about it but it appears to be THE reason their plan for the mill failed and waqs never restarted by them. They tried to con two banks in china into giving them 200 million for the mill while they bought it for 9 million and were busted for fraud so corrupt chinese bussiness men effectively killed off the mill’s last chance to restart. Did anyone else know about this as this is the first I have heard about it. Here is the article: english.caijing.com.cn/2011-11-22/111434674.html
By staff reporters Zhang Lu, Qu Yanli and Ling Xin
A hearing on a contract dispute between Sun Wave Forest Ltd. (SWFP), a Canada-registered company controlled by Chinese businessman Ni Ritao, and Prince Rupert Municipal Government was held recently in the province of British Columbia.
SWFP purchased New Skeena, a local pulp mill, in 2006 and promised to inject investment and resume production within a specified timeframe. But SWFP failed to fulfill its promise, prompting the local government to repossess the land according to the agreement and ask SWFP to leave.
Behind the default was an attempt at loan fraud which nearly succeeded. After SWFP’s acquisition of New Skeena, Zhongzhu Paper Co., Ltd., a domestic company controlled by Ni, applied to the Chinese government to purchase a 60 percent stake in SWFP, in an attempt to control New Skeena indirectly. Ni planned to apply for a loan of US$ 200 million from two Chinese banks, claiming that the money would be invested in New Skeena to help it resume production.
In the application documents to the Chinese government, an assets evaluation report issued by American Appraisal Canada Inc. (AAC) stated that the value of New Skeena was estimated to be US$ 202 million. However, according to an independent investigation, SWFP only spent C$ 9.09 million to acquire New Skeena’s assets. AAC responded to Caijing’s email inquiry and denied that it had ever issued such a report.
Meanwhile, an equity transfer agreement was also included in the application documents. The agreement stated that SWFP was a wholly owned subsidiary of Sun Wave Holdings Ltd., which had no business relationship with Ni. However, Caijing learned that the real owner of SWFP was Sun Wave Investments Ltd., a company wholly owned by Ni.
Trusting AAC’s report, the Chinese government approved the acquisition plan. However, the scam was later exposed by informants, who reported to approving departments and banks. The failure of the fraud led to the collapse of Ni’s cash chain and the eventual default of his agreement with Prince Rupert Municipal Government.
The cross-border acquisition was also tinged by politics. Gan Zhihe, an official from the National Development and Reform Commission (NDRC), previously wrote to a related party in Canada expressing his support for the acquisition in the name of the government. However, what the Canadian side didn’t know was that Gan is Ni’s friend and later became a director in one of Ni’s companies after retirement.
In fact, Gan was just one of many Chinese officials who had connected interests with Ni. Guo Jinghua, the wife of a high-level Chinese official, held 10 percent stakes in both SWFP and Canada Green Resource Investment Inc. (CGR), which were later transferred over to her son Liu Decheng. Liu also went to Canada to study in 2003.
Other employees of CGR include Lin Na, Wei Bo and Fu Yao. Lin is the daughter of Lin Xiushan, former mayor of Qiqihar, Heilongjiang Province. In 2004, Ni took part in the acquisition of a state-owned enterprise that had ceased production. Wei Bo is son of Wei Lichang, director of the Jilin Economic and Trade Commission, and Fu Yao is Wei Bo’s wife. Ni carried out a series of asset acquisitions in Jilin starting in 2002.
Ni also purchased a state-owned enterprise in Shaowu City, Fujian Province. Ye Juegui, former deputy Party secretary of Shaowu, made the deal with Ni on behalf of the local government. Ye then became the chairman of the company after the acquisition.
Even as China is gradually becoming a country ruled by law, the power of Chinese officials can still exert great influence in economic areas. The practice of examination and approval by the government is still utilized to certify market access qualification, distribute resources and grant preferential policies. This reality gives officials great power and drives businessmen to make painstaking efforts to establish good personal relationships with them.
That’s only one sentence from the article, but it says volumes about what is going to happen out there anytime soon.
That’s no way to speak of Bill Belsey.
Have a look in the paper kids…it’s sold !
with a lot of ifs if you read the paper properly. i sure hope its not sold to this group just sounds like another waste really. won’t solve the issuer of the back taxes anyway.
[quote=“decker”]
with a lot of ifs if you read the paper properly. i sure hope its not sold to this group just sounds like another waste really. won’t solve the issuer of the back taxes anyway.[/quote]
Sorry son…the deal is done regardless if you like it or not…no if ands or buts.
Let the whining commence!
So when’s it starting back up? I hear next week.
it is sold on contigent of the law suits being settled, in other words an agreement to buy it if the lawsuits goes the city’s way if not deal does not go through
Not if Bill Belsey has his way!
Anyway, I guess you get a pass on predicting that it would be in the news last Friday. This is Prince Rupert, we’re used to the newspaper being a few days behind HTMF 
[quote=“BOW”]
with a lot of ifs if you read the paper properly. i sure hope its not sold to this group just sounds like another waste really. won’t solve the issuer of the back taxes anyway.
Sorry son…the deal is done regardless if you like it or not…no if ands or buts.
Let the whining commence![/quote]
sorry make believe dad but if u understand english you would see its an offer for way below asking price. thats it an offer no sale completed its all tentative .
A few questions remain after the Northern View article:
-
The sale has no effect on the city’s coffers because they have already accounted for the money. How much was the city counting on? Does the sale price equal the back taxes owed? What about the maintenance cost or the legal costs?
-
Apparently it will turn into another coal terminal. Will it become part of the Port that has it’s municipal taxes capped with no increases for improvements (like a new coal terminal)?
[quote=“Kispiox”]A few questions remain after the Northern View article:
-
The sale has no effect on the city’s coffers because they have already accounted for the money. How much was the city counting on? Does the sale price equal the back taxes owed? What about the maintenance cost or the legal costs?
-
Apparently it will turn into another coal terminal. Will it become part of the Port that has it’s municipal taxes capped with no increases for improvements (like a new coal terminal)?[/quote]
I don’t believe that this will be part of the Port land that has its taxes capped. The purchase of this property is between Watco and the City of Prince Rupert which means that it will be privately owned land. Port property is federally owned and therefore subject to different taxation.
Jacko must be looking at what all our past mayors have done…go to work for the “indians” after their stint as mayor…what a joke!
They have a pretty sound business plan and some great partners to boot. Your views are outdated an irrelevant. As a local Caucasian male I am happy to see our first nations brothers and sisters succeed. We’re all in this together am it’s nice to see the wealth spread around a bit.
And so,where are the dollars coming from for this venture?It the Metlakatla development corp,NOT the band…and 5 mil…a fraction of what it is worth…bullshit!!!
Who cares where the money is coming from. It doesn’t matter. It’s time to turn the page on this property and the mess that it has created for so long. $5 million is $5 million and it’ll help out. The sale will also result in tax revenue coming from the property again. It’s a great deal for the city no matter how negatively some will look at it.
5 million for a polluted parcel of land in a run down city? sounds like the city is getting a good deal to me.