Manitoba seed growers and others owed money by FarmPure Seeds could recoup about six cents on the dollar out of a deal with the company’s proposed new owner.
A preliminary list of almost 500 potential unsecured creditors of the Regina seed marketing and distribution company includes over 100 names of Manitobabased businesses and agencies – including about 30 to 40 seed growers – who could share small portions of a $450,000 fund meant to cover as much as $7.87 million in debts.
Ontario turfgrass and forage seed firm Pickseed announced a deal in June to buy FarmPure’s forage and turf seed business and assets at Nipawin, Sask., about 140 km east of Prince Albert.
FarmPure Seeds’ trustee, the Saskatoon office of Meyers Norris Penny (MNP), relayed Pickseed’s $450,000 proposal in an Oct. 2 letter to the company’s unsecured creditors.
That proposal goes to a meeting of creditors at 10:30 a. m. (Saskatchewan time) on Oct. 23 at the Hilton Garden Inn in Saskatoon. Creditors, whether they’re on the preliminary list or have yet to come forward, must contact the trustee beforehand and provide proof of their claims before they’re eligible to vote on the proposal.
“In our view, there would be no funds available to unsecured creditors in a bankruptcy, and we therefore strongly recommend creditors vote in favour of the proposal,” MNP trustee Naida Kornuta wrote in the letter to creditors.
(The letter and other related documents are posted on MNP’s website at www.mnpdebt.ca. Click on “Corporate Engagements” in