Dykman Cattle Co. Ltd. and Nechako River Quality Hay Ltd., CCAA

Dykman Cattle Co. Ltd. and Nechako River Quality Hay Ltd., which operate a large-scale commercial dairy farm in Abbotsford, British Columbia, were placed under CCAA protection on November 21 on application by The Bank of Nova Scotia, owed over $75 million.

In August 2019, the Bank provided an initial loan of approximately $44 million and made further advances to the companies thereafter.

In February 2023, the parties signed a commitment letter which governed the terms of the credit facilities. The companies have been in default of their obligations to the bank since at least the summer of 2023. The companies say these defaults were caused by a combination of the quotas imposed upon it by the British Columbia Milk Marketing Board, which essentially means the farm’s revenue is fixed, and skyrocketing interest rates. The parties entered into two subsequent forbearance agreements, but the loan has not been repaid.

PwC is the monitor.

Counsel is Fasken for The Bank of Nova Scotia, Blakes for the monitor and Lawson Lundell for the companies.