The province’s largest feeder cooperative is returning to operation after going into receivership at the beginning of the year.
According to a statement from the Chairman of the Feeder Association of Alberta George L’Heureux, the Ministerial Order from the province on the Picture Butte Feeder Coop was lifted May 1st and the the Restructuring Officer Alvarez & Marsal Canda Inc., with the help of the participating lenders and regulatory authorities have worked towards approval for the group to be given the okay to operate.
This work includes the hiring of Cody McBride as the new supervisor of PBFC, bringing his background with livestock, finance and feeders associations to the position. As well profit payments are being processed and the organization will return to normal lending on Monday.
The statement from L’Heureux reads, “We recognize that there is still work to be done for PBFC to normalize processes and operations as well as see the election of a new, independent Board of Directors.”
He adds Minister of Agriculture and Irrigation RJ Sigurdson’s team has been there throughout to process as a support, as those involved worked to get PBFC back to full operational status.
Back in January Minister Sigurdson’s office issued an order outlining how PBFA failed to comply with a pair of provincial regulations, but was not being operated properly and failing to comply with the Feeder Associations Guarantee Act and the Feeder Associations General Regulation.
These breaches included using guaranteed loan proceeds for improper purposes, accepting members ineligible for membership to a feeder association, supplying livestock and advances to ineligible members, and failing to maintain adequate sales documents. Other violations include obstructing inspections and failing to provide reasonable assistance.
At the end of February, a hearing was held in Edmonton where Alvarez & Marsal Canada Inc. was appointed as the restructuring officer of the organization.
The PBFC was established as a feeder cooperative in 1991 and is the largest of 45 feeder associations in the province. The cooperative is set up and managed by livestock producers. The objective of the organization is to support members grow, finish, or deal with livestock or livestock products. According to an affidavit submitted back in February, like other groups, the PBFC supports members acquire livestock by “providing easy access to low-interest, leveraged financing backed by a government guarantee as part of the [Feeder Associations Loan Guarantee program.”
As of the end of January, the PBFC owed lenders under the credit agreement $281,266,976. As of August 31st, 2024, the PBFC had a total of 227 active and inactive members.
Related story: Alberta’s largest feeder cooperative in receivership, owes more than $281 million
