La Granaudière

La Granaudière, a Saint-Michel-des-Saints, Quebec-based wood pellet production plant, was placed in receivership on August 5 on application by Investissement Québec ("IQ") and Desjardins, owed approximately $37.3 million pursuant to various term credits and an $8 million loan that was extended to the company under the ESSOR Program, which provides limited-time support for the working capital of eligible companies. The company's operations are not profitable, with the selling prices of pellets dropping below the cost of production. In July, the company advised IQ and Desjardins that it no longer has the liquidity required to continue operations. Raymond Chabot was appointed receiver. Counsel is Norton Rose Fulbright for the company, Lavery for IQ, and Langlois for Desjardins.