Purely Canada Foods Corp. et al., a group of Saskatchewan companies in the business of grain purchasing and wholesaling, were placed into receivership on March 19 on application by RBC, owed approximately $35.6 million.

The companies operate their business from three grain terminals in Saskatchewan — in Kindersley, Lajord and Avonlea.

RBC initially provided a loan to the companies in December 2019. The loan has been extended, amended and restated on a number of occasions since that time. In the winter of 2024, the companies defaulted on the loan by, among other things, failing to provide RBC with required reports, failing to reduce the amount of their borrowings from RBC and failing to make interest payments to RBC as they became due.

The companies have become insolvent and their financial condition is deteriorating. Among other issues, the grain dealer license and the primary elevator licenses held by certain of the companies were revoked by the Canadian Grain Commission in August 2024 and have not been reinstated. In addition, Monette Farms, a supplier to the companies, commenced foreclosure proceedings to enforce a mortgage over the Avonlea grain terminal. Canadian Pacific Railway Company and Pederson Heritage Farms also obtained and registered $3.1 million and $675 thousand judgments against Purely Canada Foods.

Grant Thornton is the receiver.

Counsel is MLT Aikins for RBC, BLG for the receiver, Cassels for BDC, Norton Rose Fulbright for the companies, W Law for BNS, Olive Waller Zinkhan & Waller for Pederson Heritage Farms, Rose LLP for Trisura Guarantee Insurance Company, Lakefield for Monette Farms, and MacLean Keith for Kambeitz Agri.