MPLT board chairman Alvaro A. Santos told Variety, “Their approach to us is no longer a loan but urging us to invest in the company.”
Santos confirmed that Arctic is requesting if MPLT could invest $200,000 to the venture.
Santos said the Arctic Circle Air’s loan is now moot.
The MPLT previously approved the company for a $500,000 loan for 10 years at 7.5 percent interest.
The MPLT will decide today whether to proceed with the $200,000 investment.
In approving the loan last October, the MPLT board also approved as collateral the business’ aircraft, flight certification, accounts receivables, furniture and fixtures and other capital assets, inventory of parts, and non-perishable items.
This approval hinged also on the Commonwealth Development Authority’s decision to approve a $600,000 investment to Arctic Circle Air.
Recently, Arctic Circle Air was able to secure a $600,000 loan from Rhode Island-headquartered Independence Bank which was obtained with CDA’s $600,000 guaranty.
CDA deposited $600,000 in cash into an escrow account.
With enough money to tide the company over, it was able to purchase an aircraft in London and had it flown to Fairbanks, Alaska for recertification with the Federal Aviation Administration.
In an interview with Variety, Arctic Circle Air president Anthony M. Pellegrino expressed his elation over the recent developments and anticipates the certified plane to arrive from middle to the end of January 2012.
He also shared the bank’s confidence in the company that it would be able to get the $3 million line of credit as guaranteed by the U.S. Department of Agriculture.
Pellegrino said they expect to receive a decision later this month.
The longtime Saipan businessman, whose businesses have been certified by the military as among the certified suppliers, is encouraging interested investors to participate in their business venture that he said would shore up the CNMI’s economy.
Interested investors may contract Pellegrino at [email protected].
