Producers who were not paid for grain delivered to Global Food and Ingredients Inc. (GFI) will be compensated for the majority of their eligible claims through the Canadian Grain Commission (CGC) Safeguards for Grain Farmers Program.
Following a review, CGC determined that there were 29 eligible claims totaling $2.661 million for unpaid deliveries to Global Food and Ingredients.
The company had $2 million in security available so individual payments will be prorated meaning producers will receive 75 per cent compensation for their eligible claims. Cheques have been mailed to producers.
In addition to the compensation, CGC is working with the receiver, Richter LLP, to realize on proceeds from the sale of the company’s grain inventory, according to CGC Chief Commissioner David Hunt.
“While 100 per cent compensation is always the goal, we are pleased to provide the maximum available compensation to eligible producers. By working closely with the receiver, we may be able to provide some additional compensation beyond the security held,” Hunt said.
Holders of outstanding primary elevator receipts may receive a portion of these funds through CGC later, once the receivership has been concluded.
GFI announced this spring it was winding down its operations while owing its secured lenders at least $21 million. The Toronto, Ont.-based company bought and marketed peas, beans, lentils, chickpeas and other high-protein specialty crops, operating three handling facilities in Saskatchewan and a distribution centre in North Carolina.