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SW Saskatchewan | Big Sky Pork.
I don't know if the qualifies for being part of the Eugene Smith discussion below but it is a pretty big operation with significant ownership by the SK govt. Some guys will get hurt BAD!
January 5, 2010
Meeting set for Big Sky creditors
Everyone owed money by Big Sky Farms will have a take-it-or-leave-it deal to consider at a meeting February 8 in Saskatoon. Ernst and Young has posted all the documentation on a special website. Six secured creditors are listed along with about 800 unsecured creditors. Under the proposal, unsecured creditors owed less than $4,000 will receive 99 per cent of their money. Those with claims of $4,000 to $40,000 will receive an average of about 31 per cent. Unsecured creditors of over $40,000 will recover an average of only about 10 per cent. It should be noted that Big Sky is now paying a bonus on feed grain purchases in order to secure supplies. The hogs still need to eat. Some of the grain farmers who are owed money will be able to recoup a portion of their losses by making new deliveries. Still, the $20 million owed to unsecured creditors cuts a wide swath. In addition to grain producers, those owed money include every other conceivable business that would provide goods and services to a network of hog operations. Secured creditors, owed $81 million, will end up with Big Sky shares. In situations like this, there is typically no viable option for creditors but to take the deal offered. I’m Kevin Hursh. | |
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Cutting a wide swath - follow up
