A lawyer for the New Brunswick government says the province will have to pay Scotiabank $50 million and then seek repayment as a creditor of the Atcon group of companies.
Under the terms of a loan guarantee to Atcon, the government will pay the bank as early as this week, John Logan told the Court of Queen's Bench in Miramichi on Monday.
A court-appointed monitor was also expected to report to the court Monday on ways to restructure the Miramichi-based company or sell assets.
Five Atcon companies were placed into receivership on March 1, while another five were placed under creditor protection.
Atcon owes creditors about $250 million.
The company's main lender, Scotiabank, called in its loans on Feb. 25.
Last year, the New Brunswick government extended three different loan guarantees to Atcon worth a combined $50 million.
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