Agriculture

Lakeside Produce Inc.

Lakeside Produce Inc., which operates a large-scale commercial greenhouse in Leamington, Ontario and employs hundreds of people, filed an assignment in bankruptcy on January 17. The company lists total liabilities of approximately $188 million, including approximately $166 million to a BMO and Farm Credit Canada syndicate on a secured basis. The company appears to have been impacted by inflationary pressures and increased prices affecting the sector. EY is the bankruptcy trustee. Stikeman Elliott is counsel for the company and Dentons is counsel for the syndicate. By Dina Milivojevic

Crystal Farms Ltd.

Crystal Farms Ltd., a Leamington, Ontario-based crop farming business, was placed in receivership on November 29, on application by Xquisite Capital Corp. In 2021 and 2022, Xquisite made various loans to the company. The company defaulted on payment of the loans and, as of August 16, 2022, owed over $4.1 million on the loans collectively. In addition to the monetary defaults, the company has let insurance lapse on certain personal property. MNP was appointed receiver. Scott Petrie is counsel for Xquisite. By Dina Milivojevic

Enterra Feed Corporation

Enterra Feed Corporation, a British Columbia-based producer of high-quality ingredients for animal feed, pet food, and agricultural customers, and certain related entities were placed in receivership on November 8, on application by Forage Subordinated Debt LP III. Forage is owed approximately $10 million pursuant to credit facilities provided to Enterra. Enterra defaulted on the credit facilities by failing to make payment when due and advising Forage that it intended to wind down its operations. FTI was appointed receiver. Counsel is McCarthys for Forage, Torys for Enterra and MLT Aikins for the receiver. By Dina Milivojevic

North American Lamb Company (“NALCO”)

North American Lamb Company ("NALCO"), a Manitoba and Alberta-based lamb producer and processor, and various subsidiaries (the "NALCO Group") obtained CCAA protection on August 8, on application by Fresh Canada Meats Ltd. ("FCM"), a creditor and majority shareholder of the NALCO Group. Approximately 70% of the lambs produced in Alberta are processed by the NALCO Group. Notwithstanding this significant market share, the company has incurred ongoing operating losses since its inception in 2018. By May 2022, the NALCO Group faced a severe liquidity challenge and began delaying payments to non-essential creditors to preserve cash. This crisis ultimately culminated in both of the NALCO Group's primary secured creditors, BNS and FCC, serving notices of intention under the Farm Debt Mediation Act and the BIA. EY was appointed monitor. Counsel is North & Company for NALCO, MLT Aikins for FCM, McMillan for BNS, Sharek Logan & van Leenen for FCC, Norton Rose for the monitor and Bennett Jones for 2079468 Alberta Ltd., the NALCO Group's minority shareholder. By Dina Milivojevic

2277233 Ontario Inc.

2277233 Ontario Inc., a family run farm operating in Hagersville, Ontario, assigned itself into bankruptcy on March 3, listing over $250,000 in liabilities. The company produced naturally raised products, including fruits, vegetables, beef, pork, chicken, turkey, honey, cheese, eggs and maple syrup. It also worked with local meat processors to source meats that are humanely and ethically raised. The company struggled with financial difficulties caused by poor crop yields and rising input costs (fuel, feed, and fertilizer), and was unable to service its mounting debt and fell behind on loan payments. Ultimately, management made the decision to wind down operations and liquidate all assets. The majority of the company's land and equipment was liquidated, and proceeds paid to secured creditors. MNP is the bankruptcy trustee. By Dina Milivojevic

Chatsworth Farms Limited

Chatsworth Farms Limited, a farm located in the County Municipality of Meaford, Ontario, filed an assignment in bankruptcy on February 23, listing approximately $4.2 million in liabilities. Goldhar & Associates is the bankruptcy trustee. By Dina Milivojevic

Aqua Greens Inc.

Aqua Greens Inc., a Rexdale, Ontario-based operator of indoor vertical farming operations, was placed in receivership on February 16, on application by Farm Credit Canada, owed approximately $3.17 million. The company previously filed for protection from its creditors under the Farm Debt Mediation Act ("FDMA") on November 15. Since the initiation of the FDMA proceedings, the company ceased making any payments under the credit facilities. A mediation held as part of the FDMA proceedings did not result in a mutually acceptable resolution, and Farm Credit Canada sought the appointment of a receiver. PwC was appointed receiver. Counsel is TGF for Farm Credit Canada, Chaitons for the company and Norton Rose for the receiver. By Dina Milivojevic

Signature Mushrooms Ltd. and Alliance Mushrooms Ltd

Signature Mushrooms Ltd. and Alliance Mushrooms Ltd., two related companies that operated a mushroom farm out of Ardrossan, Alberta, filed assignments in bankruptcy on February 9, listing $3.4 million and $1.3 million in liabilities, respectively. BMO is owed $1.3 million. The Bowra Group is the bankruptcy trustee. By Dina Milivojevic

Halibut PEI Inc.

Halibut PEI Inc., a Victoria, PEI-based company that operates a fish hatchery and grow-out facility, filed an assignment in bankruptcy on January 14, listing approximately $9.5 million in liabilities, including $2.1 million to the PEI government. On its website, the company says it has been successfully raising halibut at its facility in Victoria-by-the-Sea since 2009, using geothermal salt-water wells, and is capable of producing 250,000 juvenile fish per year. The five remaining employees are still being paid, and the trustee's plan is to market the facility and the assets as a going concern in order to find a new operator and owners within the next 30 to 60 days. MNP is the bankruptcy trustee. By Dina Milivojevic

Norman Prior Nodwell

Norman Prior Nodwell, who operates a mixed farming operation near Biggar, Saskatchewan, had an interim receiver appointed over all of his livestock, forage and feed on October 14, on application by BMO, owed approximately $2.2 million. On September 29, the Animal Protection Services Branch of the Government of Saskatchewan issued a Corrective Action Order against Mr. Nodwell, requiring him to provide his livestock with supplemental feed to improve the livestock's body condition and to humanely euthanize or provide veterinary care to distressed animals. On October 6, an agent of BMO inspected the farm and discovered that the bison are in poor condition, Mr. Nodwell had recently euthanized a number of bison, Mr. Nodwell does not maintain an inventory of his cattle and bison, Mr. Nodwell's bison are unmarked and unidentifiable and Mr. Nodwell's pastures are in extremely poor condition. Deloitte was appointed interim receiver. Counsel is MLT Aikins for BMO and Cuelenaere LLP for Mr. Nodwell.

Sign up for the newsletter and get the latest insolvency news.

Sign Me Up