On Thursday, April 3, 2014 Quality Meat Packers Ltd and Toronto Abattoirs Ltd. sought creditor protection under the proposal provisions of the Bankruptcy and Insolvency Act in order to evaluate restructuring alternatives. It is important to note that Quality Meat Packers and Toronto Abattoirs Limited are not bankrupt. The provision grants the Companies protection from their creditors for an initial period of 30 days. This will give the Companies the opportunity to evaluate and pursue restructuring alternatives. A. Farber & Partners Inc. has been appointed to act as proposal trustee through this process. They will fulfill roles such as monitoring operations to ensure they are operating in compliance with the BIA and assisting them on identifying and evaluating the alternatives being considered for the business.
Great Lakes in Mitchell and Tasty Chip are not under credit protection and are operating as normal.
Quality Meats has notified its customers and Ontario Pork and are preparing plans for operating next week. They plan to continue operating their downtown Toronto facilities, are working cooperatively with their lender, and will provide updates to their customers as they proceed. They will work to minimize disruptions as best they can.
Producers under contract with Quality who have questions are encouraged call their contact at Quality Meats Hog Procurement (general number 1-800-387-1574).
Quality has been a long standing contributor to the industry and a partner with Ontario Pork. This situation is extremely unfortunate and we are still trying to understand the scope of what this means.
Ontario Pork does not know the impact yet this will have on the provincial industry and will keep you informed of next steps as they become available.
Source: OntarioPork