Great North Data goes bankrupt, owing N.L. and ACOA hundreds of thousands

A company that ran data processing centres in Labrador has gone bankrupt.

Great North Data hosted bitcoin mining operations and processed artificial intelligence algorithms at facilities in Labrador City and Happy Valley-Goose Bay.

According to bankruptcy documents filed late last month, the company listed $13.2 million in liabilities against just $4.6 million in assets.

The federal and provincial governments are owed some of that cash.

The Atlantic Canada Opportunities Agency is an unsecured creditor for $281,675.

The Newfoundland and Labrador government’s Business Investment Corporation is owed $313,718. That amount is secured by Great North Data’s building and land in Labrador City, and machinery and equipment.

CBC News has reached out to both government agencies for comment.

The company had received infusions of $500,000 from ACOA in December 2015, and another $420,000 from the province between January and August 2016.

In 2017, a Hong Kong-based bitcoin mining firm sued Great North Data in Newfoundland and Labrador Supreme Court. That legal dispute remains unresolved.

Great North Data’s website is now offline.

But an archived version notes that the company was founded in 2013, and grew “from a basement startup to a major provider of processing capacity in Atlantic Canada.”

In addition to the federal and provincial funding agencies that are owed money, Newfoundland and Labrador Hydro is listed as an unsecured creditor for another $316,477.

And the Business Development Bank of Canada, a federal Crown corporation, is on the unsecured creditors’ list for $225,000.

Read more from CBC Newfoundland and Labrador

Great North Data goes bankrupt, owing N.L. and ACOA hundreds of thousands

Source: https://www.cbc.ca/news/canada/newfoundland-labrador/great-north-data-bankrupt-1.5383713?cmp=rss
Aggregated from: CBC | Newfoundland and Labrador News

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