Specialty pork processor's assets valued at more than $20 million
Monday, June 23, 2014
by SUSAN MANN
Great Lakes Specialty Meats of Canada Inc. has assets of $20.3 million while a related company, 2268204 Ontario Inc., has assets of $1.4 million, according to a report by receiver PricewaterhouseCoopers Inc.
The pork processor and the numbered company, both owed by David Schwartz and based in Mitchell, were placed in receivership June 10 following the court approval of an application by Farm Credit Canada to put them in receivership. The receiver took possession of the companies’ property and current assets on June 10, the report says.
PwC says in its June 18 report the amounts of assets are book values of the companies based on the companies’ books and records and do not necessarily represent “the sale or liquidation value of the companies assets.”
The report also notes Great Lakes Specialty Meats ceased operations as a slaughterhouse and all employees were terminated as of June 10.
As for the amounts Great Lakes Specialty Meats owes, for secured creditors they include:
- $5.4 million to Farm Credit Canada.
- Unknown to Quality Meat Packers Holdings Limited.
- $2.1 million to the Royal Bank of Canada.
- $84,137.30 to the municipality of West Perth.
Great Lakes Specialty Meats also owes about $1 million to unsecured creditors. They include:
- Hensall District Co-operative - $2,206.
- Ontario Pork Grading Authority - $4,071.
- South West Ontario Veterinary Services - $310.
- Union Gas - $67,057.
- Workplace Safety & Insurance Board - $62,398.
Ontario Pork and Piatkowski Meats U.S. Meat Inspection were on the unsecured creditors’ list but no numbers were listed beside their names.
Meanwhile, West Perth Mayor Walter McKenzie says the municipality will eventually recover the $84,137.30 in taxes Great Lakes Specialty Meats owes of May 7.
“On the list of creditors we’re at the top,” says McKenzie, adding under legislation a property owner can have taxes in arrears for three years “and then at that point in time the municipality can sell the property.” The municipality is considered to be a secured creditor, he adds.
McKenzie says he doesn’t know how many months Great Lakes Specialty Meats has been arrears for its taxes. “You’re getting into an area I don’t get into.”
McKenzie says he also doesn’t know how much Great Lakes pays in taxes in a year. “I don’t know what that property would be assessed at.” But Great Lakes Specialty Meats is one of the larger taxpayer businesses in the municipality of 9,000 people that is half rural and half urban. The largest community in the municipality is Mitchell with 4,200 people.
Neither the municipality’s treasurer, Karen McLagan, nor chief administrative officer, Will Jaques, would say how many months the company has been in arrears on its taxes.
Jaques says “I can’t get into or confirm any tax related stuff. We can’t discuss any of that. It’s between us and the property owner.”
McLagan says “a person’s tax arrears are their business.” Asked what legislation prevents her from releasing that information, she says “I’m not sure. I believe it’s the Privacy and Information Act. What I understand is a person’s information about their payments and any arrears is their information and not the public’s information.”
Receiver PricewaterhouseCoopers Inc. and Great Lakes Specialty Meats president David Schwartz couldn’t be reached for comment. BF