Lawyers for Big Sky Farms were scheduled to appear in court Dec. 9 to ask for more time to develop a plan acceptable to its lenders.
The Saskatchewan-based hog company has been operating under credit protection since Nov. 10 and was supposed to present its plan of arrangement to lenders by Nov. 30 and the court by Dec. 9.
“The negotiations between the applicants, the senior lenders and the sub-debt lenders over the past 24 days have been difficult, complex and time-consuming and the negotiation process has taken longer than had originally been anticipated by the applicants,” said a Dec. 4 affidavit from chief financial officer Canute Tangseth.
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Tangseth said an agreement in principle has been reached on the fundamental terms but the final text needs more work.
The company wants the filing deadline extended to Dec. 23. It plans a creditors’ meeting in early February.
Chief executive officer Casey Smit said the original time line was aggressive and it isn’t uncommon to ask for an extension.
In the meantime, the company continues to operate and the barns are fully staffed.
Farmers who have been delivering feed under an incentive program are being paid.
Letters from several of them in support of the company were attached to the affidavit.
As of Dec. 1, Big Sky had bought about $1.2 million worth of feed grain from local farmers affected by the creditor protection process.
There were 415 affected farmers, and as of Dec. 3, 168 had formally signed on to participate in the incentive program.
Others who are owed money from deliveries made before Nov. 10 have appeared twice at the Saskatchewan legislature asking the province to make sure they will be paid.
The government owns 64 percent of Big Sky Farms but has steadfastly refused to become involved.
