Quality Meat Packers Bankruptcy in Motion

Jul 28, 2014

By Amanda Brodhagen, Farms.com

A court-appointed receiver, A. Farber & Partners Inc., involved in the Quality Meat Packers Limited and Toronto Abattoirs Limited bankruptcies has recovered some of the funds.

Court documents dated July 15, indicate that $9.8 million has been realized from Quality Meat Packers, and another $99,000 from the Toronto Abattoirs estates.

The 83-year-old Toronto-based Ontario pork processor was considered bankrupt by the courts on May 6, 2014.

Toronto Abattoirs Ltd., operated as a separate legal entity to Quality Meat Packers. The former provided slaughter facilities, while the latter dealt with buying hogs from farmers. Prior to the bankruptcy notice, the facility processed about 23,000 live hogs a week. Toronto Abattoirs employed 250 workers, while Quality Meat Packers had 500 employees.

On July 15, the court approved the receiver’s report and agreed to pay legal fees.

In May, Ontario Pork’s Marketing Division offered to provide some financial relief to hog farmers who were not paid for the animals that they shipped into Quality. Cheques were mailed to farmers who sold their hogs through the division. The partial reimbursement covered approximately 50 per cent of the value of every animal that had been shipped.

The sister company to Quality Meat Packers, Great Lakes Speciality Meats of Canada Inc., which is also deemed bankrupt, owes Quality Meat Packers almost $13 million. But A. Farber & Partners says it does not expect to see any of that money. The receiver plans to continue to monitor the progress of the Great Lakes bankruptcy.

The Mitchell, Ont., based plant stopped production in June. Prior to the closure, of the Quality Meat Packers plant, it processed approximately 5000 hogs per week. PricewaterhouseCoopers is the receiver involved in the Great Lakes Speciality Meats bankruptcy. Quality Meats and Great Lakes Speciality Meats were owned by the Schwartz family.

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