The Quebec government could lose nearly $40 million due to the financial difficulties of Tergeo Minéraux Critiques, a company formerly known as Alliance Magnésium that has just sought refuge from its creditors.
The Montreal company wanted to convert asbestos residue into magnesium using a relatively low-pollutant process.
But Tergeo’s projects were abruptly halted by the government and by Hydro-Québec, which rejected its request for electricity last month, according to the application the company filed in Superior Court on Tuesday.
Remember that for several months now, decisions regarding the provision of electricity of 5 megawatts or more were ultimately made by the Minister of Economy, Innovation and Energy, Pierre Fitzgibbon.
redundancies
In mid-August, Tergeo suspended activities at its foundry center in Val-des-Sources (Asbestos) in Estrie, resulting in the dismissal of 70 workers. The company then cited financing problems.
Tergeo is drowning in $100.1 million in debt. The company owes Quebec $37.2 million and private investors $62.9 million.