It is shaping up to be a Happy New Year for most of the farmers owed money by the now-defunct ILTA Grain Inc.
It appears as though all eligible farmers will be receiving full compensation, according to court documents.
The Canadian Grain Commission (CGC) determined farmers are owed $13.75 million plus another US$305,398 for grain they delivered to the pulse and special crops processor, according to a court document filed by the Monitor, PricewaterhouseCoopers (PWC).
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But not all of that grain is eligible for coverage under the Canada Grain Act.
Farmer deliveries include $2.12 million in canaryseed that will not be paid because it is not an eligible crop under the act.
There is another $646,540 that is ineligible related to post-dated cheques issued prior to June 8, 2019.
With other minor adjustments the CGC has determined that farmers are owed $11.15 million.
That amount was wired to the CGC on Dec. 27 by Atradius, the insurance company used by ILTA to provide security to the CGC in the form of an insurance policy, according to a court document filed by Atradius.
The CGC was contacted for this story but said it could not provide comment until Jan. 6.
In the last 35 years, the CGC has dealt with 24 company failures and has issued payments that have covered 94 percent of total losses, according to the commission’s web site.
Atradius is entrenched in a legal dispute with HSBC for the remaining $2.9 million that PWC had placed in an escrow and trust fund.
HSBC is one of ILTA’s two key lenders. The bank was owed $48.7 million when ILTA filed for creditor protection.
The bank received $32.6 million in proceeds from the sale of ILTA’s assets, leaving a shortfall of $16.1 million.
Farm Credit Canada (FCC) is the other big lender. It has received $81.2 million of the $88.3 million it was owed, leaving a shortfall of $7.1 million.
“There are no further proceeds or unrealized assets attributable to FCC,” said PWC in its report to the Supreme Court of British Columbia.
Contact sean.pratt@producer.com
