Key facts
- Monette Farms will ask the court on June 12 to approve a plan to sell all its farm property.
- The sale of 274,000 acres would be managed by court-appointed monitor FTI Consulting Inc.
- The plan includes extending Monette's stay of proceedings under the Companies' Creditors Arrangement Act to Nov. 13.
- Binding bids are due Oct. 15, with approval sought by Oct. 31 for bids submitted by Sept. 1.
- Monette Farms owes approximately $950 million to a lending syndicate led by the Bank of Nova Scotia.
Monette Farms is seeking court approval on June 12 for a plan that includes listing all of its 274,000 acres of farmland for sale. This sale and investment process (SISP) would be managed by FTI Consulting Inc., the court-appointed monitor. The plan also proposes extending the company's stay of proceedings under the Companies' Creditors Arrangement Act from June 19 to November 13. The application specifically requests the court to approve and expedite the sale of any real property in British Columbia, Saskatchewan, and Manitoba where the purchase price is less than $30 million. Binding bids are due by October 15, with approval of successful bids sought by October 31 for those submitted by September 1. The SISP is set to conclude just before midnight on the date Monette fully repays approximately $90 million in debtor-in-possession obligations and senior secured creditors, or at noon on November 30, whichever occurs first. Monette has engaged property brokers and is also open to proposals for investment in the companies for restructuring or refinancing of the existing senior secured debt, which totals about $950 million owed to a syndicate led by the Bank of Nova Scotia. Monette is also working with Scotia Wealth to resolve an outstanding $130-million life insurance policy, having recently sold cattle to repay an $11.8-million loan to FCC. The article also discusses the importance of careful and thoughtful expansion in farming, citing agricultural economist Eric Micheels, and incremental improvements in agronomy, as advised by MNP partner Mike Palmier.