Organic Meadow strikes deal with creditors Wednesday, September 16, 2015 by SUSAN MANNUnsecured creditors of the Organic Meadow companies will be getting the tiny portion of the money they’re owed by the end of this month, says a company spokesperson.Michelle Schmidt, marketing manager, says that on Sept. 9, the Ontario Superior Court of Justice in London approved three proposals relating to the debts of Organic Meadow Co-Operative Inc., Organic Meadow Inc. and Organic Meadow Ltd.The proposals were previously approved by unsecured creditors at meetings in August.The 25-year-old co-operative owned by more than 100 family farm members has headquarters in Guelph and is in the dairy, egg, grains and processed vegetables businesses. The co-op owns all of the shares of Organic Meadow Inc., which in turn owns Organic Meadow Ltd., the company that does the dairy processing.Unsecured creditors approved a proposal that will give them 50 per cent of the first $1,000 they are owed and then seven per cent of money they’re owed beyond the first $1,000. “We are now officially out of creditor protection and the next immediate step within the next few weeks is the funds will be disbursed as per outlined in the proposals,” Schmidt explains.Organic Meadow co-op and its two related companies have been in creditor protection since April when all three filed a Notice of Intention to make a proposal under the Bankruptcy and Insolvency Act. The company has continued operating and producing dairy products while in creditor protection.Meanwhile Organic Meadow continues working to finalize its partnership agreement with Meadowfresh, a subsidiary of Western Canadian-based Agrifoods International Cooperatives Ltd. and Avrio Ventures General Partnership Ltd.The three equity partners in the restructured company will be Organic Meadow co-op, Meadowfresh and Avrio. Schmidt says she’s not “at liberty” to discuss the details of how much equity each partner will hold.Organic Meadow co-op had a special member meeting Sept. 14 in Guelph to further update members on the tentative partnership deal and outline “how the co-op will be moving forward,” Schmidt says. About 40 people attended while another 10 participated through a telephone call-in line. BF Canada, Mexico and U.S. argue dollar value of COOL loss New dairy show signals optimism in industry says DFO chair
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