Broadacre 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