Plans to reopen Worldwide Pork in Moose Jaw, Sask., early this month have been delayed.
Rick Van Beselaere, the lawyer representing the company as it restructured under court protection, said Feb. 27 that financing was not yet in place and that would push the reopening date to late March or early April.
“We’re hoping this week to finalize all those things,” he said.
The pork slaughter and processing facility has been closed for more than nine months after it ran into financial difficulty. Producers forced the closure when they stopped delivering hogs because they weren’t being paid.
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Since then the company has worked to restructure its ownership and operations while under protection through the Companies’ Creditors Arrangement Act.
In court last week, a judge allowed about half of a claim filed by a creditor after the deadline. Instead of $1.2 million, the claim is worth $650,000, said Van Beselaere.
A new share ownership structure, under which creditors will receive shares depending on their claim amounts, was to be set up on Feb. 24, but the matter was adjourned to March 7.
Van Beselaere could not say whether the provincial government will provide new investment. It is the largest secured creditor and will receive common shares for the $2 million it is owed.
The company will be able to take advantage of the province’s 15 percent investment rebate for establishing a new federally inspected processing facility as it proceeds with plans to build fresh chill capacity.
