This past week, we reported that the FAA denied the $3.5 million grant request for taxiway and apron for VT-MAE hangar.
The city says it has secured money from the state to cover the shortfall.
Now COO Tamara Fountain has notified the Pensacola City Council that the DeepFlex project at the Port of Pensacola is on hold because of the drop in crude oil prices.
The DeepFlex project is supposed to create 200 jobs, VT-MAE 300 jobs.
The port project was to be completed in the third quarter of this year.
Fountain wrote the council, “Because DeepFlex is capitalizing its corporate growth through private equity investment, current market conditions require DeepFlex to restructure their financing.”
She said there had been rumors the project was in jeopardy because construction had slowed at the port and “some DeepFlex vendors are experiencing slowed payment cycles.”
“This could not be further from the truth,” said Fountain. “DeepFlex is simply undergoing a restructuring of their debt and capital funding based on current market conditions and the expected duration of the market correction cycle.”
The COO did not say how long the debt restructuring will take and when the port project will be completed.