BC Supreme Court approved an order August 26 for the sale of assets held by BC Tree Fruits Co-operative as the packinghouse seeks the monies needed to satisfy its creditors.
A sale and investment solicitation process (SISP) initiated while the co-op is protected from the claims of creditors has invited bids for the co-op as a whole, as well as offers for individual properties and assets held by the co-op.
The timeline for the process requests letters of intention to bid on the assets by September 27, with final bids due October 18 and an agreement for sale by October 31. Court approval will be sought by November 15, with the process wrapping up by November 30.
The initial date of September 27 will give the court-appointed monitor, Alvarez & Marsal Canada Inc., a read on the market.
A separate process, set to close by October 14, will see Growers Supply Co. sold.
Together, the assets aim to satisfy more than $65 million owed to the co-op’s secured and unsecured creditors, led by $51 million in loans from CIBC.
Various names, including the Pattison Group, have been thrown around as potential bidders, not to mention the province, which has stated it will be watching the sale process closely with a view to safeguarding infrastructure critical to the province’s tree fruit industry.
“The government will monitor the process very closely for opportunities to ensure key assets are protected,” BC agriculture minister Pam Alexis said in a statement to Country Life in BC, repeating a pledge Premier David Eby made at a press conference in Penticton on August 13.
Key assets include cold storage facilities as well as the co-op’s newly renovated and expanded Oliver packing plant, which is estimated to have added $40 million to the co-op’s debt load.
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