by SUSAN MANN
Organic Meadow members who provided loans to the failed dairy co-operative are being handled separately from the proposal for unsecured creditors.
Marketing manager Michelle Schmidt says they weren’t included in the proposal for unsecured creditors that Better Farming reported on Aug. 12. “There are other processes or things in the works to address that particular piece.”
Schmidt didn’t have details on how the repayment of the member loans will be treated. “There has been a dialogue that’s continuing with our members.” Unsecured creditors can expect to receive only about seven per cent of the money they are owed by the failed co-op.
Schmidt did say that when the co-op comes out of creditor protection, possibly by next month, there will still be a role for its farmer members that own the organic co-op.
Schmidt added that it has been confirmed the Organic Meadow co-op farmer members “will continue to have a role to play in this equity partnership. What that role will look like and all that, we don’t have all those details yet. We’re still working through those.”
As for Meadowfresh, she says it too will be “a part of our new partnership going forward.”
Meadowfresh is a subsidiary of Agrifoods Cooperative International Ltd. owned by Western Canadian dairy farmers.
Details of the partnership and what it means for the organic dairy, egg, grains and processed vegetable businesses that are part of Organic Meadow haven’t been finalized yet. Talks to finalize the new equity partnership are continuing at the same time as the company works out its repayment proposals to creditors.
Schmidt adds “it won’t be a full buy-out by any particular party. But rather it will be a partnership of multiple parties and Meadowfresh will be one of those parties.”
“The next two weeks are focused on finalizing the NOI (notice of intention to make a proposal under the Bankruptcy and Insolvency Act) process to move out of creditor protection,” she notes. “As we head into September we expect to be able to move full steam ahead and finalize those outstanding details” on the equity partnership. BF
Comments
Any deal that would give farmer members any type of a deal that gains them more then 7% of the monies they are owed would classify them as preferred creditors and that would not be allowed. regardless if its money, stock options, preferred shares, or future promised earning.
The fact that the unsecured creditors are only getting 7% of what is owed to them is ridicules, they are being penlized for for doing business Organic Meadow, in a huge way, any creditor who supports that plan, is crazy, for 7% roll the dice and vote against the proposal what do you have to lose, all that they have is an option at a better deal or at least a deal that doesn't protect the Organic Meadow farmers at the cost of the unsecured creditors.
So basically, Aviro the investor they owe 9.8 million dollars to is basically making a hostile take over and throwing the unsecured creditors a bone, this deal stinks right to the core.
Organic Meadow coop members allowed this whole situation to stumble out of control and because of that the suppliers who dealt with them in good faith now are being taken to the cleaners.
So if Organic Meadow farmer investors get one penny, I would say they are stealing from the pockets of their unsecured creditors.
You can't have it both ways, you can't say sorry to your creditors that we only have 7% of the money we owe, because we keeping a bunch for our self's and not meet their obligations to their creditors,
They need a reality check the coop is out of business, there is nothing to save and there credibility is shot, they haven't done any in good faith from what I have read, to inform their members or their strategic partners well in advance of this comedy of errors that lead them to this place.
Sean McGivern
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