Word that there may be a buyer for the canola crushing plant at Ste. Agathe, Man., has spurred hopes that its fortunes are finally turning.
The owner – Canadian Agra Foods – went into receivership more than a year ago and the plant, which was expected to employ as many as 55 workers, never reashed full production. It now sits idle while a court-appointed receiver attempts to find a buyer.
Bob Stefaniuk is among those who hope the plant will be sold. The reeve of the Rural Municipality of Ritchot said the plant would create jobs for his community, increase the municipal tax base and help attract new investment.
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It might also create another buying point for oilseeds grown in the region.
Mum’s the word
The Toronto firm hired to oversee Canadian Agra Foods’ assets is mum about who the prospective buyer might be. Richter and Partners Inc. is also tightlipped about how the plant would be used if it is sold.
When interviewed Sept. 5, Brahm Rosen of Richter and Partners Inc. confirmed a buyer is waiting in the wings, but said there is still a period of due diligence before the sale can be closed.
The period of due diligence, which allows the prospective buyer to scrutinize all aspects of the deal, was to expire this week. The purchase then can proceed if the prospective buyer remains interested.
For Stefaniuk, the suspense is nothing new.
Two years ago, he watched as Helmut Sieber, head of Canadian Agra Foods, sought protection under the federal Companies’ Creditors Arrangement Act as he struggled to keep the company intact and to crank the Ste. Agathe plant into production.
“We were always optimistic and hoping they would get things together,” Stefaniuk said last week.
But Canadian Agra Foods was burdened by debt, including a reported $29 million owed to the Bank of Nova Scotia. The company eventually was forced into receivership.
Sieber had placed the value of the Ste. Agathe plant at $60 million.
While canola crushing would seem the most likely reason for wanting to buy the Ste. Agathe plant, Stefaniuk said it may not be the only one.
He said he was once told that the plant is capable of crushing other oil-bearing seeds, including flax and hemp.
