The principal of a failed special crops brokerage firm is back in
business three months after his company left creditors on the hook for
more than $1 million.
David Nyznyk launched a new company called Grupo Canada Ltd. in July
that he describes as the marketing arm for a new consortium of special
crops exporters.
His former company, Agritrans Logistics Ltd., filed for bankruptcy on
March 21. It was the first in a series of business failures that has
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rocked the special crops industry.
Grupo Canada has already completed eight export deals involving yellow
peas, chickpeas, Laird lentils, canaryseed, flax and canola used for
birdseed. He is working with some of his old buyers and suppliers.
While Nyznyk feels guilty about losses stemming from the Agritrans
failure, he is unapologetic about being back in the special crops
business.
“I said to myself, ‘Wait a minute, why am I going to give this up? This
is what I love, this is what I know best.’ “
While some former creditors are supporting him, others are sickened by
the news that he is brokering deals again.
“In my opinion it is just a disgrace that this particular person is
starting up a new company,” said Hans Van Burck.
Bankruptcy documents show Van Burck’s Star City, Sask., seed company
was owed $140,953.10 when Agritrans went under.
Van Burck said his seed company will be lucky to get 20 cents on the
dollar for what it is owed once the case goes through the bankruptcy
courts.
Gilles Fransoo, owner of Parkland Pulse Grain Co. Ltd., also has
reservations about dealing with Nyznyk again, but he knows many other
processors won’t.
“There’s enough desperate players in the marketplace to support people.”
Parkland Pulse was listed as an unsecured creditor in Agritrans
bankruptcy documents. However, Fransoo said Nyznyk is a “nice guy” and
he wishes him luck in his new venture.
But he worries that Nyznyk got back into the game too quickly without
learning from the bankruptcy. Fransoo also has concerns about a system
that allows that to happen.
“I think our legal system is set up pretty poorly in Canada that allows
people to simply declare bankruptcy when it works in their favour.”
Nyznyk said he has learned his lesson. He admits that he “mismanaged”
Agritrans by taking on too much risk rather than simply linking buyers
and sellers.
“It was my own stupidity because I did it as a company that had zero
lines of credit,” he said.
He is starting out slow and easy with the new company. Grupo is doing
what he characterizes as a “humble type” of business for a select group
of suppliers.
Nyznyk is relying on his network of nearly 2,000 contacts and his
reputation for brokering some ground-breaking deals, like the first
shipment of pulses through the Port of Churchill, to attract Canadian
processors.
He is confident that if he can find the product, the buyers will be
there.
“It was my old customers that pushed me back in. They said, ‘Hey, since
you left there has been a vacuum in the markets. Get back in, we need
you.’ “
