CANADA - A Torronto pork processor has filed for court protection from creditors as the company has run into financial problems because of rising pig prices.
Quality Meat Packers and Toronto Abattoirs Ltd will be continuing operations while it restructures.
The company has filed for protection under the Banckruptcy and Insolvency Act.
The company has run into difficulties because of soaring prices caused by Porcine Epidemic Diarrhoea virus that has decimated pig herds in the US and has now found its way into Canada.
In the US pig prices have risen by 35 per cent over the last year because of the disease.
Ontario Pork Producers said that Quality Meat Packers and Toronto Abattoirs Limited are not bankrupt.
The provision grants the Companies protection from their creditors for an initial period of 30 days.
This will give the Companies the opportunity to evaluate and pursue restructuring alternatives.
Farber & Partners Inc. has been appointed to act as proposal trustee through the process to monitor operations to ensure they are operating in compliance with the BIA and assisting them on identifying and evaluating the alternatives being considered for the business.
Great Lakes in Mitchell and Tasty Chip are not under credit protection and are operating as normal.
Quality Meats has notified its customers and Ontario Pork and has prepared plans to keep operating.
The company plans to continue operating at iut downtown Toronto plant and Is working cooperatively with its lende, and will provide updates to customers as it proceeds.
The company said it will work to minimise disruptions as best it can.
Quality Meat Packers and Toronto Abattoirs Ltd., employs 750 people.
TheMeatSite News Desk