The embattled oilseed crushing facility in Ste. Agathe, Man., has gone through a change in name and ownership.
Canadian Agra Foods Inc. has transferred the $60 million plant to Vegican Oil Inc., a company owned 51 percent by Agra Tagger Kraftfutterwerke Und Muhlen Aktiengesellschaft (ATAG) and 49 percent owned by Canadian Agra Vegetable Oil & Foods Inc., Canadian Agra’s parent company.
The crushing plant has been under siege by lenders and contractors since it opened for business in May. Canadian Agra owes close to $29 million to the Bank of Nova Scotia and its main contractor, Ellis-Don Construction, claims it is still owed about $8 million.
Read Also
Trade war may create Canadian economic opportunities
Canada’s current tariff woes could open chances for long-term economic growth and a stronger Canadian economy, consultant says — It’s happened before.
Deal finalized
In October, Canadian Agra was granted protection from its creditors through the federal Companies’ Creditors Arrangement Act. That stay period has been extended by the court until Jan. 31, 1999, giving Canadian Agra time to complete its restructuring and refinancing process. The deal with ATAG is expected to be made final on Jan. 20, 1999.
None of the parties involved in the deal could be reached for comment. A news release issued by Canadian Agra says the acquisition was financed by a $30 million (U.S.) loan arranged by ATAG.
