The embattled oilseed crushing facility in Ste. Agathe, Man., has gone through a change in name and ownership.
Canadian Agra Foods Inc. has transferred the $60 million plant to Vegican Oil Inc., a company owned 51 percent by Agra Tagger Kraftfutterwerke Und Muhlen Aktiengesellschaft (ATAG) and 49 percent owned by Canadian Agra Vegetable Oil & Foods Inc., Canadian Agra’s parent company.
The crushing plant has been under siege by lenders and contractors since it opened for business in May. Canadian Agra owes close to $29 million to the Bank of Nova Scotia and its main contractor, Ellis-Don Construction, claims it is still owed about $8 million.
Read Also
Agriculture ministers agree to AgriStability changes
federal government proposed several months ago to increase the compensation rate from 80 to 90 per cent and double the maximum payment from $3 million to $6 million
Deal finalized
In October, Canadian Agra was granted protection from its creditors through the federal Companies’ Creditors Arrangement Act. That stay period has been extended by the court until Jan. 31, 1999, giving Canadian Agra time to complete its restructuring and refinancing process. The deal with ATAG is expected to be made final on Jan. 20, 1999.
None of the parties involved in the deal could be reached for comment. A news release issued by Canadian Agra says the acquisition was financed by a $30 million (U.S.) loan arranged by ATAG.
