Nova Scotia

Pellet mill in receivership, taxpayers out $2.7M

Fifty people have lost their jobs and now taxpayers are out $2.7 million after Enligna Canada was formally placed in receivership Wednesday by a Nova Scotia Supreme Court judge.

There are now 50 people out of work

Fifty people have lost their jobs and now taxpayers are out $2.7 million after Enligna Canada was formally placed in receivership Wednesday by a Nova Scotia Supreme Court judge.

The Upper Musquodoboit wood pellet mill shut its doors several days ago. Nova Scotia Business Inc. issued the company two loans in 2009 and 2010.

NSBI said it was informed Aug. 9 that Enligna was placing itself in voluntary receivership.

"The economy continues to have an impact on many businesses across all sectors. The closure of Enligna is unfortunate news, and it's a difficult time for employees," NSBI spokesperson Suzanne Diab told CBC News Thursday.

Diab said she didn't know why the company failed.

Enligna is a German company that had taken over the former MacTara Ltd. lumber mill in Upper Musquodoboit.

CBC News was unable to reach Nova Scotia representatives of Enligna.

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