A group that had provided storage and packing services for British Columbia fruit growers has filed for creditor protection after receiving a bank repayment notice. A man rides a bicycle on a road at an orchard at sunset in Osoyoos, B.C., on Sunday May 13, 2018. THE CANADIAN PRESS/Darryl Dyck
A group that had provided storage and packing services for British Columbia fruit growers for almost 90 years has filed for creditor protection after receiving a bank repayment notice related to more than $50 million in debts.
Court documents show the BC Tree Fruits Cooperative is “non-compliant” with loan agreements to Canadian Imperial Bank of Canada.
A statement from the co-operative issued Monday says the decision to file for creditor protection stems from the group’s “liquidity crisis,” with stone fruit crops damaged by weather identified as “the final tipping point” in a series of factors.
The co-operative announced last month that it was shutting down due to “extremely low” estimated fruit volumes, and “difficult market and financial conditions.”
It says the group received a notice from the CIBC last Tuesday demanding repayment of debt, then filed for creditor protection in B.C. Supreme Court on Monday in an effort to “maximize recovery for all stakeholders.”
A hearing is scheduled in Vancouver on Tuesday, and the group says it’s seeking a stay of all proceedings against the co-operative for 10 days, the appointment of a monitor, approval of interim financing, and the scheduling of a subsequent hearing.
Premier David Eby and Agriculture Minister Pam Alexis are also set to provide an update about supports for fruit growers at a news conference in Penticton.
Weather this winter wiped out almost all of B.C.’s peaches, apricots and nectarines for the year and severely damaged cherry orchards.
In mid-January, the Interior saw several days of frigid temperatures that killed off active buds in trees that had only just begun to recover from the 2021 heat dome and had gone through a harsh winter in 2022.
This report by The Canadian Press was first published Aug. 13, 2024.
