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FAME reduces loan for Thermogen Industries' Millinocket pellet mill project to $16 million [Bangor Daily News, Maine :: ](Bangor Daily News (ME) Via Acquire Media NewsEdge) April 17--AUGUSTA, Maine -- The Finance Authority of Maine's board of directors voted 8-5 on Thursday to approve a $16 million bond to build a $140 million wood pellet plant in Millinocket. The board's action marked a $9 million reduction in the state-backed loan they approved for a similar project proposed by the same developer in October 2013. Representatives of Thermogen Industries, the company proposing the mill, said they were "disappointed" in the reduction and could not say whether it would alter the project's realization. "This makes a challenging venture even more challenging," said Alexandra Ritchie, spokeswoman for Cate Street Capital, the New Hampshire-based investment firm behind the project. "Developing a project [of this nature] is challenging enough. That being said, we will regroup" and see whether the project can be realized." Board members who voted against the project followed a staff recommendation to lower the guarantee from $25 million despite the project having acquired new technology that FAME experts said was better than what was approved in October. Cate Street representatives said that with the $25 million bond, they expected to close on financing within 30 days and finish construction of the facility by April 2015. The plant was projected to employ 55 people and produce 300,000 tons of pellets. Watch bangordailynews.com for updates ___ (c)2014 the Bangor Daily News (Bangor, Maine) Visit the Bangor Daily News (Bangor, Maine) at www.bangordailynews.com Distributed by MCT Information Services |