Arctic Circle pays off $600,000 debt to CDA
Arctic Circle Air Company has repaid its outstanding obligations to the Commonwealth Development Authority.
According to CDA comptroller Donnie James P. Millitante, Arctic Circle has paid out their total loan as of February 30 this year.
Arctic Circle had owed CDA $600,000.
Saipan Tribune earlier reported that this money was supposed to be used as a pledge for the company’s interim loan with the Rhode Island-based Independence Bank in 2012. The money came with the condition that it would be converted into equity once the bank loan is finalized.
However, the loan transaction fell through. CDA demanded that the $600,000 be returned.
CDA in March last year finalized a memorandum of agreement with Arctic Circle for a one-year payment term.
The airline firm was required to pay $55,846 every month until all obligations were settled within 12 months. Included in the monthly payment is a 7-percent per annum interest assigned to the $600,000 loan.
