The financially troubled Canadian Agra Foods Inc. is selling its western operations in Sexsmith and Red Deer, Alta. in an attempt to breathe life into its idle Ste. Agathe, Man. canola crushing plant.
The Kincardine, Ont.-based company is also looking for a new banker.
“As of this date, the company is in discussions and negotiations with a number of interested alternative lenders. However, a definitive commitment has not yet been received,” said a company news release.
The spokesperson for the company, James Connors, did not return calls.
Read Also
Rented farmland jumps 3.4 million acres in Saskatchewan and Alberta
Farmland rented or leased in the two provinces went from 25.7 million acres in 2011 to 29.1 million in 2021, says Census of Agriculture data.
The statement also said Agra is eyeing a potential alliance with “two large industry leaders regarding the possibility of completing a strategic partnership.”
The Ontario Securities Commission halted trading in shares of Canadian Agra this month when the company failed to provide necessary financial information, including an annual report from July 31, 1997.
A review of information and events that occurred before the completion of the reverse takeover of CIC Canola Industries Canada Inc. on Oct. 28, 1996 found that pro-forma financial statements differed materially from the final audited statements.
In the statement, Connors said this is the beginning of the end of troubled times for Canadian Agra.
“Although Canadian Agra has experienced a very difficult year … recent management changes and the decision to divest of the western operations in Alberta allow the new management team the ability to concentrate fully on the startup of the new Ste. Agathe crushing facility and to proceed with the original strategy, objective and goals,” said the release.
Contractors who built the plant are still owed up to $8 million, with lawsuits pending.
