Canadians claim from bankrupt hog firm

03-12-2009 | |

Big Sky Farms of Saskatchewan, Canada has filed for bankruptcy. Farmers and small businesses across Saskatchewan are waiting anxiously to see what happens next week as the province’s largest hog company takes a financial recovery plan to bankruptcy court.

The company operates 44 hog barns in Saskatchewan and Manitoba, and is now seeking creditor protection under the Companies’ Creditors Arrangement Act.

The company owes $96 million, including $81 million to a bank and five other secured creditors. The remaining $14.7 million is owed to hundreds of unsecured creditors, many of them farmers.

The province has invested $30 million in the company over the years and is itself a secured creditor owed $4.4 million. The future of the company moves to a Saskatoon courthouse next week as the restructuring plan comes under a judge’s scrutiny.

More about