Monette Farms has cleared an important milestone in its creditor protection proceedings, with a court approving the first sale of property as the company continues efforts to reduce debt and restructure its operations.
At the same time, new uncertainty has emerged regarding the farm group's crop insurance coverage after Saskatchewan Crop Insurance Corporation (SCIC) sought repayment of an alleged overpayment.
According to a recent affidavit filed by chief executive officer Darrel Monette as part of the Companies' Creditors Arrangement Act (CCAA) process, SCIC determined that Monette Farms received excess payments during the 2023-24 crop year.
The insurer reportedly requested repayment of approximately $1.9 million by Aug. 15, indicating that continued insurance coverage could depend on resolving the matter.