Hunterwood Technologies Ltd. et al., Receivership

Hunterwood Technologies Ltd. et al., a Cochrane, Alberta-based company which designs and manufactures equipment for the hay compression industry, was placed into receivership on February 9, on application by HSBC, owed approximately $8.7 million.

Hunterwood’s business has been deteriorating due to a poor 2023 farming season output as a result of regional drought, an increase in the cost of supplies and a reduced demand from buyers reverting to more cost-effective substitute products.

The company began offering scaled down press machines at a reduced price point to address these issues, but significant challenges with the engineering, design and manufacturing of this new product led the build process to take much longer than anticipated while significantly eroding margins.

In December 2023, Hunterwood’s CFO resigned, and in early January 2024, the interim CFO discovered material inaccuracies and misrepresentations in the company’s financial records.

EY was appointed receiver.

Counsel is Bishop & McKenzie for HSBC, Fasken for the receiver and Osler for Roynat.

By: Dina Milivojevic