There has been a hiccup in the sale of a failed pulse processor to an
Australian special crops firm.
In July the receiver for Naber Seed and Grain Co. Ltd. said it had
entered into a purchase and sale agreement on the company’s Melfort,
Sask., and Star City, Sask., facilities to J.K. International Pty Ltd.
But a representative for Ernst and Young said a new development has at
least temporarily stalled that deal.
“At present the plant is not yet sold and we’re still in discussions as
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to how and when it will be sold,” Rob McMahon said.
That’s because the plant’s previous owner has taken steps to block the
sale.
“The Nabers are opposing that deal and we’re trying to sort out what
happens next,” McMahon said.
He wouldn’t specify how Todd Naber’s family is attempting to halt the
deal, but McMahon did say there is a second party interested in buying
the plant’s assets.
Todd Naber could not be reached, but his father Ken Naber indicated the
sale to J.K. International is not a done deal.
“Keep that in the back of your head that things aren’t all settled away
here yet.”
The Canadian Imperial Bank of Commerce placed Naber into receivership
on June 10. It was one of the largest pulse processors in the province,
reporting sales of $53 million for the fiscal year ending Feb. 1, 2001.
The firm is perhaps more widely known for its public battles with
Canadian National Railway.
One day after receivers took over the company, the Canadian
Transportation Agency released its ruling that CN had failed to provide
adequate rail service to Naber during a 21-week period in the fall and
winter of 2000-01. It was the second time in two years that Naber had
prevailed in a service complaint against CN.
The Western Producer has discovered that CN filed a statement of claim
with the Court of Queen’s Bench in Saskatoon three days before Naber
was placed into receivership.
In its statement, the railway alleged that Naber owed CN close to
$700,000 for freight charges incurred between April 1999 and Feb. 27,
2002.
CN spokesperson Jim Feeny said the railway filed an earlier statement
in November 2000 that alleges Naber owed it another $700,000 in
demurrage and other service charges.
Feeny said the lawsuits are tied up in the receivership process, which
is still being resolved.
McMahon said J.K. International is still in the running to acquire
Naber’s property, plant and equipment, which Ernst and Young has valued
at $2.2 million.
A spokesperson for J.K. International declined to comment, but in an
earlier interview Sonja Parhar said the Naber opportunity was too good
to pass up, even though the company was not actively looking to buy
processing capacity in Canada.
J.K. International imports, exports, processes and ships pulses and
other crops. It is based in Brisbane, Australia, but has offices in
other countries, including Canada.
Its main business in Canada is human consumption peas, but it has also
exported chickpeas, lentils, wheat and flax. On average, it ships two
bulk vessels and numerous containers of grain from Canada per month.
Despite this most recent glitch, McMahon said he expects the sale of
Naber’s assets to be finalized within the next month.
