REGINA — Monette Farms has filed for court protection to restructure its operations.
The application was filed in Calgary April 21 and the company remains operating under Companies’ Creditors Arrangement Act proceedings.
In a press release, the company said challenging economic conditions such as sustained cost pressures, volatile commodity markets and higher interest rates led to the decision to seek protection under federal legislation.
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The Saskatchewan-based company has been trying to sell land in several provinces for months. It’s unknown how much, if any, has sold. It operates about 350,000 acres of owned and leased land in the western provinces as well as in the United States.
Why it Matters: Monette Farms is among the largest operations based in Saskatchewan and has come under scrutiny in a British Columbia court case in which it was ordered, on appeal, to pay a consultant $2.7 million for services in land purchases. A feedlot operation near Lac Pelletier, Sask., has also raised concern about potential contamination.
The company said it remains fully operational and maintains its work force of hundreds.
”This process allows us to address financial pressures while staying focused on our people, our responsibilities as farmers, and the continuity of our farming operations” said founder and chief executive officer Darrel Monette.
“Our priority is to keep farming our land, keep our teams working and position the business for long-term strength. We fully expect to emerge from this process as a stronger company, ready to operate for decades to come.”
In a letter to landlords and partners, Monette said the company intends to manage its obligations such as land rent “in an orderly, predictable way.”
“We understand that the main question for landowners is how this affects lease performance and rent. Our intention is to keep leases current and to communicate clearly about timing and process. Where any approvals or documentation are required as part of the restructuring, we will explain what is needed and why,” he said.
He encouraged landlords with specific questions to reach out to their usual management contacts and promised updates as the process continues.
