The Ilta Grain Belle Plaine facility has been sold to Viterra Inc.
A British Columbia Supreme Court hearing approved sale of the plant on Aug. 23. No price was disclosed.
Ilta filed for receivership in June with about $150 million debts to more than 400 creditors. Main creditors are Farm Credit Canada, $86 million; and HSBC Bank, $47.5 million.
The grain company’s shareholders had invested $146 million in six plants since 2014, buying, processing and exporting mostly lentils, peas, and chickpeas.
About $14 million is owed to farmers. It appears most of that will be recovered through insurance required by Canadian Grain Commission (CGC) producer protection programs.
Court documents indicate about $12 million in buyer protection is available.
The insurer had cancelled insurance, but negotiations saw the insurance reinstated.
Dozens of the farmers owed money are from the Moose Jaw region. The largest farm creditor is Cadrain Farms of Leask, owed $1.35 million.
Sellers of canary seed to Ilta are out in the cold. CGC does not require coverage of specialty crops like canary seed.
Ilta had its licence reinstated allowing sale of existing grain inventories but can’t buy any new grain.
At the receiver’s recommendation two company founders and the chief financial officer were fired from the Ilta board of directors. All three had opposed sale of the Belle Plaine plant. Ilta was in talks to sell the plant before receivership was filed.
The Belle Plaine operation with 350,000 metric tonnes storage and a 135 railcar loop was the second largest plant in the company.
Ilta has processing operations at Saskatoon with 500,000 tonnes capacity; Belle Plaine, 350,000 tonnes; Swift Current, 60,000 tonnes; Cutknife, 70,000 tonnes; and two at North Battleford with a combined 140,000 tonnes.
A Portage La Prairie facility was sold in January to help restructure operations.
Under court order, proposals to buy Ilta plants will be accepted by Sept. 30 with plans to approve sale by Oct. 30.
Ron Walter can be reached at [email protected]
