BC Tree Fruits to sell assets, government looks to help growers store produce to prevent loss
While emotions are mixed, BC Tree Fruit co-op members in the Okanagan now have a clear path forward after the court ordered that the 88-year old organization must sell its resources after having applied for creditor protection.
In Canada, the Companies' Creditors Arrangement Act states that corporations owing debts of more than $5 million can apply for creditor protection in the courts. If granted, the organization will be given a grace period, typically of 30 days, to restructure without having to repay loans to creditors. CCAA is intended to prevent the consequences of bankruptcy from impacting the economy and society.
"A large portion of the growers membership want BC Tree Fruits to re-open," said Lalli. Most importantly, he said the co-op members want access to the Tree Fruit assets – specifically the specialized controlled atmosphere and cold storage facilities. However, while the co-op members want to use the storage facilities to store their fruit, so too do private packers. "I hate to use that word but that's basically what it is.
Lalli said that he is"very disappointed that the government did not take a position at the hearing, considering they had someone sitting at the board table watching this unfold." The Ministry of Agriculture is currently working to give growers access to "as many of the services that the co-op provided as possible to ensure they get their fruit to market."
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