Alberta’s largest feeder cooperative in receivership following ministerial order
By Kristine Jean SOUTHERN ALBERTA NEWSPAPERS ssnews@sunnysouthnews.comr on March 4, 2025.
Herald file photo by Ian Martens -
Cattle gather to feed and rest in a field just outside the city. The Picture Butte Feeder Cooperative has gone into receivership.The Picture Butte Feeder Cooperative (PBFC) has gone into receivership and according to an order issued by the Minister of Agriculture and Irrigation, RJ Sigurdson on Jan. 27, failed to comply with the Feeder Associations Guarantee Act (FAGA), the Feeder Associations General Regulation (FAGR) and was being operated in an unsound manner.
Some of those violations include accepting members ineligible for membership to a feeder association, using guaranteed loan proceeds for improper purposes, supplying livestock and advances to ineligible members, failing to maintain adequate sales documents and obstructing inspections and failing to provide reasonable assistance.
The Picture Butte Feeder Cooperative is now operating under receiver-manager Alvarez & Marsal Canada Inc., who were appointed to be the restructuring officer following a hearing in Edmonton on Feb. 21. The following information was shared on their website last week.
“On February 21, 2025, the Court of King’s Bench of Alberta granted an order whereby Alvarez & Marsal Canada Inc. was appointed receiver and manager of all Picture Butte Feeder Cooperative’s current and future assets, undertakings and properties of every nature and kind whatsoever, and wherever situate, including all proceeds thereof, pursuant to section 299(1) of the Cooperatives Act, SA 2001, c C-28.1 and section 13(2) of the Judicature Act, RSA 2000, c.J-2.”
The Restructuring Officer Order was granted late last month following an application by the PBFC to have a restructuring officer appointed, so that the association could make the necessary changes to ensure it is “best positioned for continued operational success going forward” as noted in a sworn affidavit by Tony Ankermann, vice-chairman and member of the Picture Butte Feeder Cooperative’s board of directors, on Feb. 18 in Calgary.
Since the minister’s order in January, the entire board of directors, as well as the supervisor and the administrator for the Picture Butte Feeder Cooperative, have resigned.
Established as a feeder cooperative in 1991, the PBFC operates as a feeder association and is the largest of the 45 feeder associations in Alberta, in terms of borrowings and use of the provincial guarantee available under the Feeder Associations Loan Guarantee (FALG) program. A feeder association is a cooperative set up and managed by livestock producers that enter into agreements with its members with the objective of assisting its members to grow, finish, or deal with livestock or livestock products, explained Ankermann in his affidavit.
“More particularly, PBFC, like other feeder associations, assists its members in acquiring livestock by providing easy access to low-interest, leveraged financing backed by a government guarantee as part of the FALG program,” he said.
The minister’s order prohibited further advances under the guaranteed loan to the PBFC, a decision that was made after reviewing findings of an inspection report prepared by the Inspection and Investigation Section (IIS) of Alberta Agriculture and Irrigation in November 2024. That report contains findings of inspections of the PBFC that were conducted between Sept. 7, 2023, and May 15, 2024.
Ankermann also said in an attempt to resolve the concerns raised by the Ministry, representatives of the Feeder Association of Alberta (FAA), an umbrella association to which all Alberta feeder associations belong, met with the Ministry on Feb. 7, to determine steps needed by PBFC for the order to be lifted, which required a substantial number of personnel and operational changes.
“Given the serious concerns raised by the Ministry and the nature and scope of the action items to be undertaken by PBFC, the board resolved to apply to the court to seek the appointment of a restructuring officer,” noted Ankermann.
FAA executive director Craig Guthrie, did not provide any additional details on the meeting or situation when contacted last week but did note that they were working with the receiving officer (A&M) and “assisting them with their duties as outlined in the court mandate,” said Guthrie, noting the FAA is an advocacy board for the feeder associations in the province.
“Each of them operate independently and work with the government on access to the Feeder Association Loan Guarantee Program,” he added.
As of January 31, 2025, the total amount owing by PBFC to the lenders under the credit agreement is $281,266,976, being about the same as what the PBFC lent to its members. As of Aug. 31, 2024, the PBFC had a total of 227 active and inactive members.
A bench brief of the application by PBFC, also noted they were requesting to seal Ankermann’s (second), confidential affidavit until further order of the court.
“The confidential affidavit contains a copy of the (IIS) report and compliance memorandum, each of which reference certain findings of the Ministry that are subject of significant dispute by certain parties,” read paragraph 36 of the brief. “The contents of the report may also be the subject of further legal proceedings by various parties, including, PBFC.”
In his affidavit, Ankermann pointed out the possibility of detrimental impacts if a restructuring officer was not appointed and PBFC was unable to satisfy compliance requirements.
“There will be a significant and unprecedented disruption to the members and their respective farming operations,” he said, noting the potential of creating a ripple effect throughout the Picture Butte area, considering its size as the largest feeder cooperative in the province.
“The decision to commence these proceedings and request that a restructuring officer be appointed was not taken lightly,” said Ankermann. “I am very mindful of the uncertainty that currently surrounds PBFC among its members and the considerable stress that has caused, including confusion and disruption to their operations.”
Citing the “highly unfortunate” and “regrettable” situation, Ankermann did state his hopes to resolve the issues and move forward.
“I verily believe that the appointment of a restructuring officer will provide PBFC and its members with the best opportunity for PBFC to move forward with fresh and updated corporate governance and operational policies in order to continue to serve its members for decades to come, in a transparent and responsible fashion,” Ankermann concluded.
22-21
I am making money from home with facebook. I received $1595 this month for doing an easy home job. I work in my part time only 4 to 5 hours a day on facebook. Everyone can earn more cash easily from home. For more information go to this site home media tech tab for more detail thank you.
HERE→ http://www.get.salary7.com