A Court of Queen’s Bench judge in Saskatoon has approved Big Sky Farms plan to repay about $101 million to creditors
Under the plan the company, which is the largest pork producer in Saskatchewan, will pay $81 million to secured creditors, such as lending institutions, and $20 million to unsecured creditors, including farmers and small businesses owed money by Big Sky.
Combined, creditors will be paid an average of 13 cents on the dollar.
The plan approved by the court had a few days earlier been approved by 98.6 percent of creditors, representing 98.4 percent of the value of proven claims.
The final step will come in the next 30 to 45 days, when Big Sky is scheduled to turn over funds to Ernst and Young, which will then distribute the money to the creditors.
Chief executive officer Casey Smit said many of the company’s suppliers have experienced financial hardships, but said the plan approved by the court was the best outcome that could be achieved.
Big Sky filed for protection under the Companies’ Creditors Arrangement Act on Nov. 10.
The company was damaged by rising feed costs, country-of-origin labelling on shipments to the United States, a rising Canadian dollar and the H1N1 virus, called swine flu by many.
One key aspect of the company’s restructuring plan is the development of eight limited partnerships under the Big Sky umbrella.
