Broadacre and Wigmore Farms Enters Creditor Protection: Owes Over $46 Million

broadacre_logoBroadacre Agriculture, Inc, a division of Pike Management Group, and Wigmore Farms, Ltd., have entered into creditor protection under the Companies’ Creditors Arrangement Act, owing more than $46 million to a laundry list of creditors.

Under the Companies Creditors’ Arrangement Act, companies can “avoid bankruptcy or foreclosure or seizure of assets while maximizing returns for their creditors and preserving both jobs and the company’s value as a functioning business. CCAA proceedings are carried out under the supervision of the Court,” according to the Government of Canada’s office of the superintendent of bankruptcy Canada.

See the terms of the CCAA Initial Order (Companies Creditors Arrangement Act) from the court to BroadAcre Agriculture Inc and Wigmore Farms Ltd that outlines the protections, restructuring and arrangements.

A creditor list published November 4th, shows the Saskatchewan-based mega-farms owe, among many others, Farm Credit Canada $14.7 million, Wigmore Crop Production (part of the Wigmore company’s integrated farm production chain) over $5 million and Agriculture Financial Services Corp. over $1 million.

In a sworn affidavit by the Broadacre CFO Andrew Marshall, the financial stress the company is under is clearly described in the 16 page document.  For example point 34 (page 9), states that”

“In the fall of 2014 the Company required an urgent infusion of capital as it did not have the financial resources to complete the pending harvest.”

The affidavit continues in point 65 (page 16), by stating:

The company has exhausted all of its options in attempting to build a profitable enterprise that could execute its business strategies and exploit growth opportunities in the agricultural sector.  In light of recent events, the company will accelerate its ongoing deliberations and hops to return to this Honorable Court prior to the expiry of the stay of proceedings sought in this Application with a course of action to enhance the financial recoveries of all interested stakeholders.

Broadacre Farms purchased Wigmore Farms in 2012 after the Regina-based mega-farm struggled financially. According to its website, Broadacre Farms began its Saskatchewan operations in 2010, with plans to expand to Alberta and Manitoba.

See the full list of creditors here: Broadacre Farms & Wigmore Farms List

Related: One Earth Farms Ceases Operations on Blood Reserve Near Lethbridge

 

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5 Comments

Anonymous

Isn’t it funny how often history repeats itself? These creditors should have done their homework, even just a few phone calls would have revealed the pattern here.

Reply
Calvin Gavelin

Its sad to see a group of people who published and did media releases announcing what super advances and accomplishments that they were performing in agriculture, now try to bury, hide and ignore the agreements and promises they created. They should be made accountable for everyone’s sake.

They ran up local farm prices that the rest of us will pay for for years to come, gave nothing back to local communities and best of all touted the future of agriculture, all the while disappointing and desecrating the memory of the families they bought out. I hope they face the public tongue lashes and be forced to make amends. To me it’s amazing how a group of individuals can lose so much money when the commodity prices are so good, land prices escalated, following multiple years of bumper crops. I can only imagine what would happen if it was the other way.

The local neighbours who have to put up with their methods, insults and competition must feel rage to see this …them now hide their heads in the sand, ask for the law to protect them and to try to wash their hands of any wrong doing.

I feel for the people who have been shafted so far and others who will be if the get away with it. If this approach to big business farming – to lose it all – is the way of the future, there are going to be ALOT of people very hungry…including the family farms left in the communities/RMs affected by this situation! I think government and the money community should think VERY carefully about how they want farming to look in the future…. The options are smaller-medium sized farms run by local families who are involved in their communities, accountable to their neighbours and stewards of the land….or big business who go big, take the money while it’s good and then walk away, leaving many in the lurch when they go and a bad taste in the public’s mouth about agriculture in general. You choose!

Reply
Anonymous

I can understand your disgust with these types of farms and how they operate. But, the ” disappointing and desecrating the memory of the families they bought out” comment makes no sense to me? The landowners sold to the corporate farm, they acted on greed by selling to whoever showed up with the most money. Did they really think that the new land owner would leave all the old farm sites intact and send them Christmas cards? Also, the former landowners often pull up stakes and run for the city with their windfall. Leaving the communities they lived in all their lives, further hurting struggling small towns. I guess the point I want to make is without someone willing to sell, these corporate farms wouldn’t exist.

Reply
anonymous

This snake oil salesman did a group of us for over a million bucks a few years ago with ideas that he never acted on! “What goes round, comes round i believe is the old saying”. A lot of good people will be hurt by this guy and I agree with the one writer who made the key point that a few phone calls to the former victims would have saved them a ton of grief. I sincerely hope that this stops him from any more scamming.

Reply
Former Millionaire

I believe the real problem, is the civil courts protecting the Canadian banks.

A number of years ago, Royal Bank of Canada offerred firstly an option to skip a mortgage payment; and secondly mortgage renewing options. On the renewal paper they offered to discuss any matter with regard to the mortgage. I requested to exercise the mortgage slip-a-payment option, before signing any renewal. After 60 days, they began misappropriating mortgage funds and claimed that there were mortgage arrears. They seized the property, evicted all tenants, then fraudulently listed the property with a local realtor. All demands for access to the banking records were refused by RBC and the Court.

Then RBC obtained summary judgement on a motion. The discovery process was waived by the Court.
The judgement occurred despite the fact that I continued to make mortgage payments until they seized the property, and RBC records proved that the mortgage had been renewed at a lower interest rate. The only way the principle balance could have declined, was if RBC had indeed renewed the mortgage at the new lower rate.

For the next 16 years, RBC hunted me and my family. The courts allowed RBC’s fraud. RBC repeated one secret word “resjadjudicatta” to the Court, everytime I applied for any relief.

Until the Courts begin to uphold the laws of Canada and each Province, the banks will always prevail.

Reply

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