The Canadian Grain Commission has announced that they will be compensating producers who were not paid for grain delivered to Global Food and Ingredients Inc. (GFI) upon its winding down of operations, though not at 100 per cent of owed value.
The CGC says that producers will be compensated at 75 per cent for their eligible claims through the Canadian Grain Commission’s Safeguards for Grain Farmers Program.
After reviewing individual producer claims, the Canadian Grain Commission has determined that there were 29 eligible claims with a total amount owing of $2.661 million for unpaid deliveries to GFI. Individual payments will be prorated as GFI had $2 million in security available. Cheques have been mailed to producers.
The Canadian Grain Commission says it is also working with the receiver, Richter LLP, to realize on proceeds from the sale of the company’s grain inventory. At a later date, once the receivership has been concluded, holders of outstanding primary elevator receipts may receive a portion of these funds, the commission says.
“While 100% compensation is always the goal, we are pleased to provide the maximum available compensation to eligible producers. By working closely with the receiver, we may be able to provide some additional compensation beyond the security held”, says David Hunt, the chief commissioner of the Canadian Grain Commission.
Related: Global Food and Ingredients winding down operations, awaiting appointment of receiver
