RBC gets receiver for Alberta dairy equipment group as losses, tax arrears mount

Chinook Farm Innovations Inc., PMI Corp. and Pro-Line Manufacturing Inc. were placed into receivership on August 12, 2026, on application by Royal Bank of Canada, which is owed approximately $5.4 million.

Chinook sells dairy and sheep farm equipment, including milking and robotic systems, ventilation and feeding equipment, and provides electronic repair and research and development services to customers across Alberta, Saskatchewan and British Columbia. It acquired the business of Chinook Dairy Service Ltd. in August 2022 for $6 million, funded by $3.5 million from RBC and a $2.5 million vendor take-back payable over approximately 11 years. PMI owns the primary real estate from which Chinook operates and is the sole voting shareholder of Chinook and Pro-Line.

The group was transferred to RBC's special loans group unit in June 2025 after declining sales, financial losses and covenant breaches. Combined sales fell from approximately $17 million in 2023 to $13.9 million in 2025, when the companies and a former Saskatchewan affiliate recorded a $2.5 million net loss and liabilities of approximately $12.6 million against $11.8 million of assets. Chinook also breached its 1.15:1 debt service coverage covenant and failed to satisfy several financial reporting requirements.

Financial pressure intensified as Chinook stopped remitting payroll source deductions. CRA arrears rose from approximately $641,000 as of August 31, 2025 to $872,000 by July 29, 2026, and were increasing by approximately $35,000 per month. In June, the debtors advised RBC that they intended to wind down because they lacked sufficient cash flow to fund ongoing operations.

RBC demanded repayment and issued enforcement notices on July 2. After the debtors failed to repay, and provided consents to enforcement on July 28, RBC sought the receivership.

GlassRatner is the receiver. Counsel includes Gowling WLG for RBC, Miller Thomson for the receiver, and Warren Sinclair for the debtors.