15°c Clear
28°c Isolated showers
Winnipeg Free Press - ONLINE EDITION
Puratone files for bankruptcy protection
The Puratone Corp., the third largest hog producer in Manitoba, has filed for bankruptcy protection raising alarm bells about a crisis in the hog producing industry in Manitoba.
The Niverville-based operation has about 40 barns, mostly in eastern Manitoba, producing about 500,000 hogs per year.
The company cited a whole series of challenging market conditions that has forced the company into a situation where it has to be restructured. Those conditions include the recent phenomenon of high feed prices brought on by the drought in the U.S. corn belt.
It owes about $92 million and is in breach of its loan covenants. According to court documents, it has lost about $36 million over the past four years.
Puratone has about 300 employees, but a company release said over the past two years the company has eliminated non-core operations and cut staff.
Barns are remaining open and Puratone’s secured creditors, the Bank of Montreal and the Farm Credit Corp. are supporting the action and will continue to fund operations, but industry sources say it is unclear what will happen going forward.
Puratone is owned by a complex structure including many private shareholders.
Puratone’s filing comes the same week that Big Sky, Saskatchewan’s largest hog producer and the second largest in the country, was placed into receivership after having gone through its own restructuring three years ago. It owes its creditors about $69 million.
Hog producers in Manitoba have been beating the drum about severe losses for some time now.
Spokesmen for Manitoba Pork Council say Manitoba’s producers are in line to lose as much as $150 million this winter.
They say hog producers are losing at least $20 per head with no relief in sight at least until next summer when futures prices are already being pegged at about $20 per head higher than they are today.
History
Updated on Thursday, September 13, 2012 at 4:03 PM CDT: Removed image unrelated to the story.
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.
More Local
- Back to Top
- Return to Local
More Local
(1 of 15 articles for today)
Lotteries
1:00 AM 0In the event of a discrepancy between this list and the official winning numbers, the latter shall prevail.
PICK 3
Winning number ...
Poll
Most Popular Local
- Court told driver hysterical after vehicle fatally hit highway worker
- Child in critical condition after West End crash
- Basic arithmetic back in class
- Mountie hospitalized, dog euthanized after crash near Saskatoon
- City-wide average mosquito count drops
- Province blows off wind megawatt goal
- MP Glover files new version of disputed 2011 election expenses
- Committee wants report on free replacement for garbage, recycling carts
- Pallister continues PST fight
- Teen on train tracks from York Landing
- Safeway stores likely to close
- Squirrel crawls out of Winnipegger's toilet
- Poolside feeding prompts eviction
- Court told driver hysterical after vehicle fatally hit highway worker
- Stoppage of play off the field
- Game-day planning a must
- Child in critical condition after West End crash
- Basic arithmetic back in class
- No mad dash for concessions
- Kenyan wins Manitoba Marathon
- Father blasts 'horrific' movie
- Safeway stores likely to close
- Man dies after being pulled from vehicle submerged in Winnipeg retention pond
- Flood money paid for CEO's romantic trip
- Car in deadly crash stolen?
- UPDATE: Now with FAQ: Keeping the e-party going without the party-crashers
- Squirrel crawls out of Winnipegger's toilet
- Daycare provider charged with abandonment
- Poolside feeding prompts eviction
- Two people killed in crash north of Winnipeg
- Basic arithmetic back in class
- Province blows off wind megawatt goal
- At 55, I'm wise to what's real in life
- Court told driver hysterical after vehicle fatally hit highway worker
- Bible Belt's bogeyman still haunts town
- Strong may they run: Manitobans reflect on that fateful day in Boston
- Child in critical condition after West End crash
- Mountie hospitalized, dog euthanized after crash near Saskatoon
- City-wide average mosquito count drops
- Province's new approach to teaching math long overdue: readers
- Basic arithmetic back in class
- Squirrel crawls out of Winnipegger's toilet
- Safeway stores likely to close
- Doctors blamed for death
- App could give Winnipeggers chance to report bad parking, get paid
- $110-K worth of nickel plates stolen from Thompson mine
- A day in the life of 13,380 Manitoba Marathon participants
- Province blows off wind megawatt goal
- Known as kind, outgoing men
- Stoppage of play off the field
- Basic arithmetic back in class
- Squirrel crawls out of Winnipegger's toilet
- Developers to unveil plans for bold downtown tower
- Father blasts 'horrific' movie
- Teachers support adding sexual-orientation themes to all curricula
- The crime fighter's revolution
- Safeway stores likely to close
- Car in deadly crash stolen?
- Fishing for fashion
- City's first urban reserve born
Ads by Google
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?
Login SubscribeHave Your Say
Comments are open to Winnipeg Free Press Subscribers only. why?
SubscribeThe 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.