
Sunterra takes steps toward creditor protection while U.S. subsidiaries face legal scrutiny
Several businesses under the Sunterra banner, known in Alberta for its agriculture and high-end grocery operations, have taken steps toward creditor protection as three of its U.S. subsidiaries face legal and financial scrutiny.
Late last month, Sunterra Quality Food Markets, Sunterra Food Corporation, Sunterra Farms, Trochu Meat Processors and Sunwold Farms all filed notices under the Bankruptcy and Insolvency Act, a process that gives financially strained companies 30 days of protection from creditors while they come up with a plan to restructure.
Trochu is where Sunterra processes its pork in Alberta. The facility was damaged in a fire last summer and has not yet reopened.
Sunwold Farms is a pig operation in South Dakota where Sunterra sends pigs to be finished.
"Please be advised that the company is not bankrupt and has availed itself to a procedure whereby an insolvent person, with creditor and Court approval, restructures its financial affairs," said the insolvency trustee, Harris and Partners Inc., in letters to creditors for each of the five entities.
Documents show each of the five entities owe millions of dollars to creditors, though some of that includes money owed to one another. For example, Sunterra Farms Ltd. owes just over $3 million to Sunterra Food Corp., and Sunterra Food Corp. owes $4.9 million to Sunterra Farms Ltd.
Meanwhile, a Midwestern farm credit cooperative has alleged breach of contract and fraud against three of Sunterra's U.S. subsidiaries. Since 2002, Sunterra has been shipping pigs to northwest Iowa and South Dakota to finish growing, according to the company's website.
The claims against Sunterra Farms Iowa, Sunwold Farms and Lariagara Farms South (another pig-finishing operation in South Dakota) are related to an alleged "cheque kiting" scheme in South Dakota, court documents show.
All three entities have the same parent company, Sunterra Enterprises Inc.
Cheque kiting refers to the process of depositing cheques from one account with insufficient funds into another, to temporarily make a bank balance seem inflated.
According to Compeer Financial, the companies were sending multiple cheques every day via next-day mail to be deposited with Canada Western Bank. At the same time, they were also sending Compeer multiple cheques, drawn against the Canada Western Bank account.
"In other words, Defendants were sending nearly identical amounts and numbers of checks back and forth between CWB and Compeer daily," said the court documents.
Compeer alleges the cheques purposely didn't exceed $1 million to avoid scrutiny.
It's alleged that the companies collectively owe $35,259,796 to Compeer and have $19,017,724 in collateral.
Given the apparent financial strain, Compeer has suggested that the companies can't afford to properly feed and care for 110,000 pigs that are being used as collateral on its loans.
"[An assessment officer for Compeer] testified that Defendants' pigs lack feed and veterinary care," the court documents say. "[He] added that propane was running low, which is used to heat the barns that house Defendants' pigs."
The companies, for their part, said Compeer was facing a self-inflicted problem because it controlled the "purse strings" and was trying to "turn off the taps" to cause an emergency, the court records show.
"Asking for Compeer to "keep the taps flowing" while Defendants' accounts are overdrawn tens of millions of dollars due to Defendants' alleged fraud is an untenable argument," a South Dakota judge wrote in his discussion of the case.
On March 28, the judge granted Compeer's motion to avoid mediation in the case and to appoint a receiver.
Sunterra has not responded to an interview request from CBC News.
A spokesperson for Compeer declined to comment.
The Sunterra company started with a small family pig farm operated by Stan and Flo Price in Acme, Alta. In 1970 the company began a pig-breeding business, Pig Improvement Canada (now known as Sunterra Farms). In 1990, it launched pork processing in Trochu and Sunterra Market retail locations in Calgary.
In 1990, the company told the Calgary Herald it had invested in a specialty slaughterhouse in Trochu and retail stores in Calgary to sell "superior, 'uniform-quality' meat" from "genetically improved herds" to the public.

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Winnipeg Free Press
13-05-2025
- Winnipeg Free Press
Carbon dioxide pipeline regulations pass in testy Iowa Senate but still need governor's signature
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'Summit Carbon Solutions has invested four years and nearly $175 million on voluntary agreements in Iowa, signing agreements with more than 1,300 landowners and securing 75% of the Phase One route,' Zenor said in a May 1 statement. Zenor declined to comment Tuesday. Dozens of Summit employees and leaders and members of the Iowa Corn Growers Association, the Iowa Renewable Fuels Association and labor unions made a big showing as debate in the state Senate seemed inevitable. They told lawmakers that the project is essential for the future of Iowa's ethanol industry, for farmers and for construction jobs. The pipeline would carry carbon emissions from ethanol plants in Iowa, Minnesota, Nebraska, North Dakota and South Dakota to be stored underground permanently in North Dakota. By lowering carbon emissions from the plants, the pipeline would lower their carbon intensity scores and make them more competitive in the renewable fuels market. 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In South Dakota, in particular, a slew of eminent domain legal actions to obtain land sparked a groundswell of opposition that was closely watched by lawmakers in Iowa as well. Tensions flared among the Iowa Senate's Republican supermajority, with senators openly criticizing one another and exposing the closed-door discussions that got them there. Thirteen Republican senators joined with 14 Democrats in voting in favor of the bill. Twenty-one Republicans and one Democrat voted against it. Winnipeg Jets Game Days On Winnipeg Jets game days, hockey writers Mike McIntyre and Ken Wiebe send news, notes and quotes from the morning skate, as well as injury updates and lineup decisions. Arrives a few hours prior to puck drop. The Republicans who opposed it stressed that they, too, respect private property rights. But they said the bill has holes that will threaten any infrastructure development in Iowa, not just carbon-capture pipelines. 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Cision Canada
08-05-2025
- Cision Canada
ARENA PROCEEDS WITH ENFORCEMENT ACTION
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Toronto Sun
07-05-2025
- Toronto Sun
Hudson's Bay insiders not bidding on business, assets or leases: court documents
Published May 07, 2025 • 1 minute read The Hudson's Bay flagship Toronto store at Queen St. W and Yonge St. on Tuesday March 18, 2025. Photo by Jack Boland / Toronto Sun A new court filing says several bids have been received for Hudson's Bay assets, but no offers have come from company insiders. This advertisement has not loaded yet, but your article continues below. THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLY Subscribe now to read the latest news in your city and across Canada. Unlimited online access to articles from across Canada with one account. Get exclusive access to the Toronto Sun ePaper, an electronic replica of the print edition that you can share, download and comment on. Enjoy insights and behind-the-scenes analysis from our award-winning journalists. Support local journalists and the next generation of journalists. Daily puzzles including the New York Times Crossword. SUBSCRIBE TO UNLOCK MORE ARTICLES Subscribe now to read the latest news in your city and across Canada. Unlimited online access to articles from across Canada with one account. Get exclusive access to the Toronto Sun ePaper, an electronic replica of the print edition that you can share, download and comment on. Enjoy insights and behind-the-scenes analysis from our award-winning journalists. Support local journalists and the next generation of journalists. Daily puzzles including the New York Times Crossword. REGISTER / SIGN IN TO UNLOCK MORE ARTICLES Create an account or sign in to continue with your reading experience. Access articles from across Canada with one account. Share your thoughts and join the conversation in the comments. Enjoy additional articles per month. Get email updates from your favourite authors. THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK. Create an account or sign in to continue with your reading experience. Access articles from across Canada with one account Share your thoughts and join the conversation in the comments Enjoy additional articles per month Get email updates from your favourite authors Don't have an account? Create Account An affidavit from Jennifer Bewley, chief financial officer of the retailer's parent company, indicates no insiders submitted a bid for the business or its assets by the April 30 deadline. The Bankruptcy and Insolvency Act defines insiders as people who control a business, whether alone or through a group. Bewley's affidavit also says that no insiders bid on the company's leases through a separate process looking for takers for its properties. She says all those identified as insiders have said they do not plan to make offers. The development puts an end to any possibility of Hudson's Bay governor and executive chairman Richard Baker soon regaining control of the business he has presided over since 2008. The court filing says the companies guiding Hudson's Bay through creditor protection are now sifting through bids for the ailing department store, its assets and leases. Television Toronto Maple Leafs Canada Columnists Sunshine Girls