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Processor Told to Pay Up or Close Down,

by 5m Editor
15 January 2008, at 3:40pm

CANADA - The Prince Edward Island government is demanding an Island hog plant pay back its $1.5-million loan because it has not met the terms of the loan with the P.E.I. Lending Agency.

Natural and Organic Food Group has been given 10 days to pay back the money it owes provincial taxpayers.

A letter of demand was issued by PEI's government last week and the Charlottetown plant, which is owned by a Quebec firm and Island hog farmers, has until 21 January to pay back the money.

A report in PEI's Guardian newspaper said that Provincial Treasurer Wes Sheridan would not comment on the actions of the Lending Agency. Confidentiality rules that are in place, although he did say that he had not heard of any further investments in the plant on the part of the owners.

The plant has been under the threat of closure since the provincial government said it would not invest any more money into the business. The owners wanted CAN $2 million. The province said it would put the plant into receivership.

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5m Editor