Latest news with #FeederAssociationsGuaranteeAct
Calgary Herald
23-05-2025
- Business
- Calgary Herald
'An exceptionally trying time': Province lifts order preventing Picture Butte Feeders Coop from making loans to members
After being banned by the province from lending money to members for about four months, the Picture Butte Feeder Co-operative is getting back in business. Article content Article content Alberta Agriculture and Irrigation Minister RJ Sigurdson issued an order Jan. 27 preventing the co-operative from making any new loans under the government-backed Feeder Associations Loan Guarantee (FALG) program. Article content Article content That order was lifted May 1, following the co-operative's operations being brought back into compliance with the requirements of the Feeder Associations Guarantee Act (FAGA) and the Feeder Associations Guarantee Regulation (FAGR). Article content Article content On Monday, the Picture Butte Feeder Co-operative will resume providing loans to eligible members. Article content 'This has been an exceptionally trying time for the many members of PBFC that have had their operations put on hold through no fault of their own,' Feeder Associations of Alberta chair George L'Heureux said in a statement on Thursday. Article content 'We recognize the pace of business has no sympathy for interruptions and acknowledge the very tough financial position members were placed in.' Article content The Picture Butte Feeder Cooperative, the largest of the province's 45 feeder associations, helps members buy livestock through the Feeder Associations Loan Guarantee program, which, according to the province, provides access to low-interest, leveraged financing backed by a government guarantee. Article content Article content As of Aug. 31, 2024, PBFC had 227 active and inactive members. Article content Alvarez & Marsal Canada, along with lenders and regulatory authorities, have taken steps to ensure the association is approved to operate, said the Feeder Associations of Alberta. Article content A new supervisor, Cody McBride, who has more than 25 years of expertise in the agriculture and financial sectors, has been hired,and profit payments are being processed. Article content But the Feeder Associations of Alberta says there's still work to do, including an election for a new board of directors. Article content With the order now lifted, Alvarez & Marsal Canada has turned its attention back to hiring an administrator, a role it says it has largely being doing. In a Thursday update to PBFC members, the restructuring officer said it has narrowed its search to a couple of qualified candidates.
Calgary Herald
30-04-2025
- Business
- Calgary Herald
Progress being made to again provide loans for Picture Butte Cooperative members
The court-appointed restructuring officer for Alberta's largest cattle feeder association says progress continues to be made towards restoring the ability of the Picture Butte Feeder Cooperative (PBFC) to again make loans to its members. Article content Article content Alberta Agriculture and Irrigation Minister RJ Sigurdson issued an order Jan. 27 preventing the PBFC from making any new loans under the government-backed Feeder Associations Loan Guarantee (FALG) program. Article content Article content In the order, the ministry said the PBFC failed to comply with sections of the Feeder Associations Guarantee Act and the Feeder Associations General Regulation (FAGR). and also found some aspects of its operations to be 'unsound.' The order was based on Agriculture and Irrigation inspections between Sept. 7, 2023 and May 15, 2024 and a Nov. 18 report prepared based on the findings. Article content Article content Following the ministerial order, the Picture Butte Feeder Cooperative asked that Alvarez and Marsal Canada be appointed as the restructuring officer, and in February the company was appointed by a court, with a mandate to take the necessary steps to get the order lifted. Under the court order, all current board members were deemed to have resigned. Article content Article content On Monday, Alvarez and Marsal Canada said it has been working closely with the minister's office and lenders over the past several weeks to have the ministerial order lifted and negotiate updated credit term arrangements between the PBFC and lenders. Article content 'We anticipate providing a further update later this week on the timing of when PBFC will be back to 'operations as normal' to allow PBFC being able to provide loans to its Member's without restrictions,' wrote Alvarez and Marsal Canada senior vice-president Orest Konowalchuk in the April 28 update. Article content A spokesperson for Sigurdson said Wednesday the restructuring officer, acting as the PBFC board, 'still needs to solidify a few things operationally' before the ministerial order can be lifted. Article content In Monday's update to members, Konowalchuk had other progress to report, with Alvarez and Marsal hiring a local supervisor for the PBFC. Cody McBride, who has over 25 years of expertise in the agriculture and financial sectors, starts May 5. Article content 'This decision marks a significant step forward in ensuring PBFC's operational stability and progress,' wrote Konowalchuk about hiring McBride. Article content The restructuring officer is also hiring a permanent, full-time administrator and hopes to select a candidate 'in the very near term.' On March 5, an interim administrator, Lynda Miller, was hired following the resignation of the former administrator, according to a March 17 update to members. Article content Members were also informed March 17 that an inventory count was conducted between March 3 and 7. Inspection teams went to 52 farms and feedlots, and found cattle were properly identified and in good condition, and the correct number of cattle were present. Article content The Picture Butte Feeder Cooperative, established in 1991, helps members buy livestock through the Feeder Associations Loan Guarantee program, which, according to the province, provides easy access to low-interest, leveraged financing backed by a government guarantee. Under FALG, feeder associations are approved for a maximum revolving credit amount from lenders, and a portion of that amount is guaranteed by the Alberta government, resulting in members being able to get 'relatively straightforward and easy access to capital, that may not otherwise be available to the individual members,' reads an affidavit by former Picture Butte Feeder Cooperative vice chair and board member Tony Ankermann. As of Aug. 31, 2024, PBFC had 227 active and inactive members. As of Jan. 31, members owed PBFC $281,266,976 in total, under both the purchase and equity loan programs, and the PBFC owed the same amount to its lenders. Article content
