Nemori Farms, CCAA

Nemori Farms, a Newfoundland and Labrador-based dairy farmer, obtained CCAA protection on March 6.

The company maintains a herd of 300 cows and cultivates 250 acres of land on the west coast of Newfoundland and Labrador.

Since acquiring the property in 2020, the company has experienced liquidity challenges and financial distress due to numerous factors including the Covid-19 pandemic and related effects, including rising essential supply costs (particularly in relation to animal feed and diesel) due to inflation and rising interest rates, as well as onerous loan terms coupled with the need for more capital than projected due to unexpected equipment maintenance and repair costs. As a result, the company defaulted on loans owed to creditors, including secured creditor RBC, owed approximately $9.3 million.

Grant Thornton is the monitor.

Counsel is O’Keefe & Sullivan for the company and Cox & Palmer for RBC.