[Vulcan]

Originally Posted by Tinordi

Paying for a company's factory, office building, or other piece of fixed capital that is generating a return for the company is apparently quite common place. So lets have it, where else is it occurring?

Here's a Mitsubishi pulp mill that had it's $140M debt written off. This was after Alberta already spent $75M in infrastructure costs. I think the timber rights were thrown in as well.

http://www.efones.ca/pulpmills.html

http://books.google.ca/books?id=g3cL...roject&f=false

Here's more

On June 1/97 restructuring of the Alberta debt was completed and on April 30/97 Millar settled its debt to our province by issuing a $25 MILLION non-interest bearing note payable and cash of $6.5 MILLION. At the same time the $264 MILLION of debt owing to the taxpayers and citizens of Alberta, by way of a loan from The Heritage Trust Fund to Millar Western to build a pulp mill, was written off. Not a single penny was paid by Millar Western on that debt.

Premier Klein stated that the loan was a “sweetheart deal.” He did not explain why such a loan could be made from the sacred Heritage Savings and Trust Fund.

also

The Millars of Edmonton became the sole owners of the Whitecourt pulp mill after the Alberta Government, their partner, walked away from the mill in April/97 because it incorrectly considered the mill to be a money pit.
The Province of Alberta lost $244 MILLION on the sale of the mill. The Alberta government has dug into our Heritage Savings and Trust fund for loans dating back to 1987 and began making loan-loss provisions in 1994.

That's a total of over $500M for the Millars sweetheart deal.

Daishowa another pulp mill outfit received $275M in subordinated debentures and $75M in infrastructure costs.