March 1, 2023
Merit Functional Foods Corporation, an operating entity which owns a plant protein production facility in Winnipeg, and 11410083 Canada Ltd., which owns the real estate on which Merit operates, were placed in receivership on March 1, on application by Export Development Canada and Farm Credit Canada. EDC and FCC are pari passi senior secured creditors collectively owed approximately $95 million. They provided financing for the development, construction and ramp-up of operations at the facility. In January 2022, Merit began suffering significant cash flow shortages. The companies have conducted an out-of-court sales process to sell their business and the production facility, which did not generate any formal offers. The companies are in default of their obligations under the credit facilities and were set to run out of operating cash in early March. PwC was appointed as Receiver. Gowling WLG is counsel for EDC and FCC, Taylor McCaffrey is counsel for the companies, Thompson Dorfman Sweatman is counsel for the Receiver, MLT Aikins is counsel for CIBC, and Stikeman Elliott is counsel for the Burcon Entities.
By Dina Milivojevic