Winnipeg Free Press - PRINT EDITION

Investment group's unit in bankruptcy

  • Print

The restructuring of Tribal Councils Investment Group took hard-edged form this week with the closing of one of its units.

Precambrian Wholesale Ltd. was placed into bankruptcy and all 20 of its employees have been let go.

Joel Lazer of Lazer Grant, the professional services firm hired by TCIG nearly eight months ago to assist in the restructuring after a new board took over, said it was an unfortunate decision that had to be made.

"We made significant efforts to sell Precambrian to keep it going but we were not successful," Lazer said. "It's too bad. Precambrian was a good business but it required significant investment of both time and money."

Precambrian was a long-standing wholesaler to northern and remote retailers even before it was acquired by TCIG about a decade ago.

There were rumours for some time the business was suffering from cash-flow issues aggravated by ballooning accounts receivables, with some customers delaying payment as it seemed the end was near.

"That happens every time," Lazer said. "People stop paying their bills."

Meanwhile, Lazer said a refinancing deal for TCIG is imminent.

When former CEO Allan McLeod and other executives were let go by the new board because of a growing conflict between management and owners -- the seven Manitoba tribal councils -- one of Lazer's main tasks was to find a replacement lender to TCIG's banker, RBC, which wanted out.

Lazer said a new lender has been identified and it may be as soon as one week away from having a deal in place. He said a new management team is also waiting in the wings, ready to take over when the new financing is finalized.

Lazer said "significant progress has been made to rehabilitate or improve the other subsidies" over the past seven to eight months.

"We're working closely with a re-financer and we expect positive news from them shortly." he said.

Republished from the Winnipeg Free Press print edition November 30, 2013 B7

Fact Check

Fact Check

Have you found an error, or know of something we’ve missed in one of our stories?
Please use the form below and let us know.

* Required
  • Please post the headline of the story or the title of the video with the error.

  • Please post exactly what was wrong with the story.

  • Please indicate your source for the correct information.

  • Yes

    No

  • This will only be used to contact you if we have a question about your submission, it will not be used to identify you or be published.

  • Cancel

Having problems with the form?

Contact Us Directly
  • Print

You can comment on most stories on winnipegfreepress.com. You can also agree or disagree with other comments. All you need to do is be a Winnipeg Free Press print or e-edition subscriber to join the conversation and give your feedback.

You can comment on most stories on winnipegfreepress.com. You can also agree or disagree with other comments. All you need to do is be a Winnipeg Free Press print or e-edition subscriber to join the conversation and give your feedback.

Have Your Say

New to commenting? Check out our Frequently Asked Questions.

Have Your Say

Comments are open to Winnipeg Free Press print or e-edition subscribers only. why?

Have Your Say

Comments are open to Winnipeg Free Press Subscribers only. why?

The Winnipeg Free Press does not necessarily endorse any of the views posted. By submitting your comment, you agree to our Terms and Conditions. These terms were revised effective April 16, 2010.

letters

Make text: Larger | Smaller

LATEST VIDEO

One in hospital following Ellice crash

View more like this

Photo Store Gallery

  • Horses enjoy a beautiful September morning east of Neepawa, Manitoba  - Standup Photo– Sept 04, 2012   (JOE BRYKSA / WINNIPEG FREE PRESS)
  • PHIL.HOSSACK@FREEPRESS.MB.CA 101130-Winnipeg Free Press Columns of light reach skyward to the stars above Sanford Mb Tuesday night. The effect is produced by streetlights refracting through ice crystals suspended in the air on humid winter nights. Stand Up.....

View More Gallery Photos

Poll

Do you think the Jets' three pre-season losses in a row are a sign of things to come?

View Results

View Related Story

Ads by Google