Members who loaned money to failed organic dairy co-op to get special deal Wednesday, August 12, 2015 by SUSAN MANNOrganic 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 Government invests in northern agriculture Seasonal workers get awards for long time service in Ontario
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