The Canadian Grain Commission reporting that W.A. Grain & Pulse Solutions has been placed into receivership, and its affairs are now being managed by BDO Canada(a court-ordered receiver).
The company which is based out of Innisfail, Alberta has primary elevator licenses in Bashaw and Bowden as well as in Saskatchewan with locations in Pambrun, Ponteix, and Vanguard.
CGC Spokesperson Remi Gosselin says on May 1st, the Grain Commission issued new licenses to W.A. Grain which is now being operated by the receiver to allow it to sell grain inventory provided the proceeds of sales are placed in a trust account to satisfy producers who are owed money.
"Also, as part of its licensing conditions, W.A. Grain is prohibited from receiving grain from producers, purchasing grain from producers, or incurring any liabilities to producers as well as contracting new grain sales. So the point here is, as it relates to the trust account is that W.A. Grain can't use the proceeds of sales of grain inventory until the rights of producers who are outstanding have been addressed. The CGC holds the security in the form of the payables' insurance policy in the amount of $4 million. We have commenced an evaluation process to determine liabilities, and we can't really say at this point whether adequate security levels were in place until the process is complete. We need to conduct a final audit, which will determine the total number of eligible claims and amounts."
At this point he estimates that they potentially have somewhere around 100 to 120 producers that may be affected in both Saskatchewan and Alberta by this failure.
The Canadian Grain Commission is advising farmers that may be owed money by the company to contact the CGC immediately.Click here to see more...