Foam Lake, Saskatchewan, canola processor and biodiesel manufacturer Milligan Biofuels has entered receivership.
The company, which was founded by a group of farmers as Milligan Bio-Tech in the ’90s, is known for purchasing heated and off-grade canola from growers across Western Canada, producing biodiesel, fuel conditioners, road dust suppressant, rust inhibitors, and other canola derivatives.
The Court of Queen’s Bench for Saskatchewan issued an order appointing Hardie & Kelly Inc. as receiver and manager on February 1st after ATB Financial filed an application to call in the remainder of a loan, with an amount due and owing of $490,331.
Milligan opened its biodiesel plant at Foam Lake in 2009 and underwent a major expansion in 2011, with capacity to produce 20 million litres of biodiesel per year from 60,000 tonnes of canola.
The plant at Foam Lake employed around 45 people. The company also had a regional sales office in Red Deer, Alberta and a corporate office in Calgary, Alberta.
Read the court documents related to Milligan Biofuels’ receivership proceedings on the receiver’s website, here.