The province has turned down a request by Entegrity Wind Systems for an additional $350,000 loan.

Jim Heath, the U.S. president of Entegrity, wanted the loan from P.E.I. Business Development so he could pay his employees the thousands of dollars they're owed in back pay.

The troubled wind turbine company already owes P.E.I. taxpayers $370,000. The information came to light during a Supreme Court hearing Friday in Charlottetown.

Entegrity was back in court seeking a second extension, which would give the company another 36 days to get its fiscal house in order.

Justice Wayne Cheverie said he will rule on that second extension sometime next week.

If it doesn't get that extension, Entegrity will be forced into bankruptcy. The province says it won't get into discussions about why it turned down Entegrity's request because the case is still before the courts.

In court Friday, Kevin Kiley, the lawyer for Entegrity's Toronto-based bank, argued that a further extension will only sink Entegrity and its bank, Mercantile, into a bigger hole. He said Heath is simply "stringing everybody along", adding that secured and unsecured creditors and former employees of Entegrity have been "hung out to dry."

Despite Heath's assurances, Kiley said he has been unable to secure a promised $10-million investment in the company, he has been unable to secure a loan with the P.E.I. government, and the company is unable to meet its customer's needs because it now only has two employees on P.E.I. Entegrity owes millions of dollars, including $3 million to its Toronto-based bank.

Part of that $3 million is guaranteed by Export Development Canada, which means Canadian taxpayers could be on the hook for most of that loan if the company goes into bankruptcy.

Pamela Williams, the lawyer for Entegrity, argued this is not a second extension - but a first extension - considering Entegrity could not get access to its building for part of the first extension.

That's because Entegrity owed back rent. That bill has now been paid. Williams admits that Entegrity has not only stumbled and tripped, but fell hard.

But she said Heath is working hard, sometimes up to 16 hours a day to get his company back on its feet. She said he simply needs more time.

"The reality is there is a lot going on in this time period," said Williams.

"What this company has been through is astonishing and unfortunate," she added.

Justice Cheverie agreed to a short extension, called a bridging extension, which would allow Entegrity to continue to operate until he makes his decision next week.

The last extension came to an end Oct. 9.

In a brief interview, Heath told The Guardian this will be his last request for an extension.

"It's my opinion I will be successful," he said as he made his way out of the Charlottetown courthouse.

Kiley said Mercantile also believes the P.E.I. wind turbine maker can be successful, but under their watch - not Heath's. He said they want to get Entegrity going again and sell it as a going concern.

"There is little value in the company unless it's a going concern," he said.