Hog plant costing CAN$20K a Week to Stay Open

by 5m Editor
20 February 2008, at 9:47am

CANADA - Receivers says that Prince Edward Island's beleaguered pig processing plant in Charlottetown is cosing taxpayers $20,000 a week to stay open.

The Province has been running the plant since January following significant losses and the inability to repay a Government loan. The plant is in the hands of a receiver, which has recently released a financial statement.

According to CBC News, the plant which processes most of the Maritimes slaughter pig, plus production from Quebec, owed a total of $4.3 million when it went into receivership. Farmers were owed $940,00 for their pigs, a debt that was guaranteed by the province.
A further CAN$2 million was owed to provincial taxpayers through loans that went unpaid and workers salaries were up to date. However, vacation pay and pensions had to be paid by the receiver.

The company does have some assets including CAN$450,000 in cash, CAN$1.3 million in accounts receivable, and brand values listed at CAN$500,000.

But it also carried a CAN$1.2 million debt, owed by the former owners, which is currently in dispute.

Obtaining an accurate picture of the plant's true financial status has been difficult which is hampering efforts to find a buyer. There has been minimal interest in the business, also a factor of the current pig industry crisis, although the receiver assures that the factory will remain open for at least two more months in a bid to find an investor.

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5m Editor